Uche Usim, Abuja
Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr Umaru Ibrahim on Friday disclosed that over ₦8.25 billion has been paid to 442,999 depositors of liquidated banks as insured amount since the agency was set up in 1989.
Ibrahim, who made the disclosure at a media briefing to mark the 30th anniversary of NDIC also revealed that over ₦2.97 billion has been disbursed to 83,415 depositors of closed microfinance banks (MFBs), while over ₦70.53 million has been paid to 869 depositors of closed Primary Mortgage Banks (PMBs).
Ibrahim, who was represented at the event by the Director, Communications and Public Affairs Unit of NDIC, Mr. Sunday Oluyemi said the corporation has twice increased the maximum deposit insurance coverage, from ₦50,000 per depositor of deposit money bank (DMB) at inception to N200,000 in 2006 and finally N500,000 in 2010.
“Similarly, maximum coverage per depositor of PMBs/MFBs was increased from N100, 000 in 2006 to N200,000 in 2010. Coverage per depositor per PMB had since been increased to N500,000 to reflect the increased deposits structure in the sub-sector and to stimulate mortgage savings.
“Since its inception, the Corporation successfully responded to economic realities and yearnings of depositors by periodically increasing the maximum Deposit Insurance Coverage (DIC) to enhance the confidence of the public in the Nigerian financial system. On average, this is done every five years in line with Global best practice.
“The DIC covers all deposit-taking financial institutions licensed by the CBN which include Deposit Money Banks (DMBs), MFBs, PMBs, Non-Interest Banks (NIBs) and subscribers of Mobile Money Operators (MMOs).
“NDIC currently provides Deposit Insurance cover to 27 DMBs, 918 MFBs, 34 PMBs and two NIBs
“The Corporation is identified with ensuring that depositors of liquidated banks suffered little loss or pain. Between 1994 to date, 53 DMBs, 325 MFBs and 51 PMBs were put under liquidation without disruption to the nation’s payment system”, he revealed.