BusinessFeatures

30 years of implementing Deposit Insurance System in Nigeria

30 years of implementing Deposit Insurance System in Nigeria

The Nigeria Deposit Insurance Corporation (NDIC) last week rolled out the drums and red carpets to celebrate 30 years of implementing Deposit Insurance System in the Nigerian banking and financial sector, Chika Otuchikere captures the moments and strides of the journey so far.

Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC) Umaru Ibrahim, while unveiling events to celebrate 30 years of Deposit Insurance System in Nigeria (DIS) during a press conference, at the weekend, expressed great pleasure to address the media on the anniversary. He affirmed the commitment of the media in the country’s socio-economic development and particularly, the NDIC drive to protect depositors and deepen the stability of the nation’s financial system.

Pointing out that the pivotal role of the media to grow awareness of NDIC activities, largely informs the reciprocal commitment of NDIC to sponsor the annual Workshop for Financial Correspondents Association of Nigeria (FICAN) as well as the Editors’ Forum, Ibrahim said; “NDIC sees media practitioners as strategic partners. Consequently, one of our four themes for the execution of NDIC’s strategic objectives is“creating the desired public awareness for the implementation of the Deposit Insurance System (DIS) in Nigeria”.

The NDIC helmsman captured the essence of the anniversary celebration saying,  “anniversaries are an important part of life, whether for individuals or organisations. They remind us of important events, and put a record on the Calendar to prompt us on things that matter to us. In NDIC, this is an opportunity to look back and trace our journey over time and shine the light on the extent to which the Corporation has contributed to Financial System Stability in Nigeria.

“Commemoration of our 30th Anniversary provides an excellent opportunity to undertake a comprehensive review of our past legacies and a platform to fine-tune our Vision and Mission. It also enables us to cast a searchlight on the future, particularly the challenges and Opportunities”.

The chief executive went down memory lane to outline the strides of the corporation in the last 30 years. According to him, the NDIC created in 1989 by a military Decree and passed into an Act in 2006 was to contribute to financial system stability provide a further layer of protection to depositors and complement the role of prudent bank management as well as the Central Bank of Nigeria (CBN) supervisory activities in ensuring a safe and sound banking system.    

NDIC was established in March 1989 following the promulgation of Decree No. 22 of 1988, now replaced with NDIC Act 16 of 2006. The public policy objectives of the Corporation are to contribute to financial system stability as well as to protect small and less financially sophisticated depositors by providing an orderly means of resolution and compensation in the unlikely event of failure of their insured financial institutions.

The Corporation, Ibrahim enunciated, “adopted a propelling Vision for itself: “To be the best deposit insurer in the world by 2020”; and a lucid Mission: “To protect depositors and contribute to financial system stability through effective supervision of insured institutions, provision of financial/technical assistance to eligible insured institutions, prompt payment of guaranteed sums and orderly resolution of failed insured financial institutions”.

“NDIC” he said, “was designed as a Risk-Minimiser with the mandate of Deposit Guarantee, Banking Supervision, Distress Resolution and Bank Liquidation. The Corporation had in the last 30 years achieved some milestones in the discharge of its mandate to the satisfaction of its Stakeholders.”

The chief executive reeled out some of the activities and achievements of the corporation in the last 30 years: One of the NDIC’s crucial responsibilities is to ensure the safety of depositors’ funds. “The NDIC guarantees payment of deposits up to a maximum limit in accordance with its statute in the event of failure of an insured financial institution. The DIS covers all deposit-taking financial institutions licensed by the CBN, including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Non-Interest Banks (NIBs) and subscribers of Mobile Money Operators (MMOs). The NDIC, currently provides Deposit Insurance cover to 27 DMBs, 918 MFBs, 34 PMBs and 2 (Two) NIBs”.

The NDIC boss disclosed that since the inception of the corporation it has successfully responded to economic realities and yearnings of Depositors by periodically increasing the Maximum Deposit Insurance Coverage to enhance the confidence of the public in the Nigerian financial system. This, he said, is done, on average, every five years in line with Global best practice. According to him, the NDIC to date, has paid a cumulative sum of over ₦8.25 billion as insured amount to 442,999 depositors of closed DMBs; paid over ₦2.97 billion to 83,415 depositors of closed MFBs, and over ₦70.53 million was paid to 869 depositors of closed PMBs.

Apart from grappling with the challenges of failed financial institution, the corporation put measures in place through its supervisory role in collaboration with the CBN to ensure that the Institutions remain healthy at all times and/or where there are problems, they are detected and addressed promptly. Supervision, Ibrahim noted, guarantees stability, integrity, soundness and efficiency in the banking system and is employed by NDIC for the protection of depositors’ interest. He affirmed that the collaboration between CBN and NDIC over the years has reduced the bank examination cycle, enhanced monetary policy, promoted safe and sound banking practices as well as assist in resolving Troubled Financial Institutions.

Other areas where the NDIC has thrived in the financial sector include the Failure Resolution. When the corporation came on stream in 1989, the banking sector was in distress but it weathered the storm in the sector and the Managing Director could confidently say, “the experience garnered by the Corporation in those early years have proved invaluable. “The NDIC in collaboration with the CBN had adopted multiple resolution options to resolve failures in the system”.

Bank Liquidation which the corporation is identified with is another task that demands ingenuity and expertise and the NDIC has displayed them with dexterity. Ibrahim said that between 1994 to date, 53 DMBs, 325 MFBs and 51 PMBs were put under liquidation without disruption to the nation’s payment system.

The NDIC has also played a major role in the areas of promoting financial literacy and consumers protection in the system. The corporation published several books including two story books (“The Little Piggy” for Nursery and Primary schools and “The Money Tree” for junior secondary schools). The NDIC adopted the “Catch Them Young” approach in Financial Education to instill the right values, attitudes and perceptions towards financial management in children and youth.

The chief executive surmised the activities and performance of the corporation in the following words: “In the past 30 years, NDIC exhibited a strong determination to maintain a high level of professionalism and excellence in its operations. The Corporation had gone through a series of structural and operational reforms necessary to align its activities with global best practices and also give the right impetus to the realisation of its mandate. With the reforms, the Corporation has been able to institute Systems, Processes and Procedures that makes it operationally ready to effectively discharge its mandate.

“In light of the foregoing, it is gratifying that in 30 Years since its establishment, the Corporation has fulfilled the public policy objectives for which it was established. Therefore, the Corporation has lined up a series of activities to celebrate its remarkable achievements in the past 30 years as well as give honour to its founders who have left a legacy of Excellence in service and commitment to the stability of the financial system”.

CAPTION FOR PIX I

L-R: Rep. of the Rt. Hon Speaker, House of Representatives Hon. Victor Nwokolo; Guest Lecturer, Aigboje Aig-Imoukhuede; Minister of State for Niger Delta Affairs, Festus Keyamo, SAN; NDIC Board Chairman, Ronke Sokefun; Minister of Water Resources, Engr. Suleiman H. Adamu; Vice President, Prof. Yemi Osibanjo, and NDIC MD/CE Umaru Ibrahim, mni, FCIB, at the Nigeria Deposit Insurance Corporation (NDIC) 30th Anniversary Lecture and Presentation of the Book: ‘30 Years of Deposit Insurance System in Nigeria’ in Abuja 

CAPTION FOR PIX 2

Alake of Egba Land, HRM Oba Adedotun Aremu Gbadebo; Emir of Kazaure, HRH Najib Hussaini Adamu; Ooni of Ife, His Imperial Majesty, Oba Adeyeye Enitan Ogunwusi (Ojaja II); Vice President, Prof. Yemi Osibanjo; HRM Oba Adejimi Adu Alagbado and Rep. of IADI Sec Gen, Nikolay Remchukov at the Nigeria Deposit Insurance Corporation (NDIC) 30th Anniversary Lecture and Presentation of the Book: ‘30 Years of Deposit Insurance System in Nigeria’ in Abuja

Comment With Facebook

Comments (115)

  1. Youre so cool! I dont suppose Ive read something like this before. So nice to search out someone with some original ideas on this subject. realy thanks for beginning this up. this web site is something that is needed on the internet, someone with a little bit originality. helpful job for bringing one thing new to the web!

  2. generic viagra cheap shipping cialis daily viagra buy manchester

  3. cheap viagra jelly uk real cialis without a doctor’s prescription where to order viagra online

  4. best place to buy cialis uk cialis for peyronie order cialis safely online

  5. Thanks for the best blog.it was very useful for me.keep sharing such ideas in the future as well. address |

  6. order viagra ireland cialis prices viagra sale online ireland

  7. home page home page buy viagra cialis buy viagra nhs

  8. Absolutely fantastic posting! Lots of useful information and inspiration, both of which we all need!Relay appreciate your work. anonymous |

  9. safe order cialis canada cialis at a discount price cialis for sale online

  10. Please visit these excellent download sites and download all cool stuffs for free.

  11. order brand name cialis viagra sale paypal buy viagra without prescriptions

  12. viagra cheap thailand viagra cheap usa buy female pink viagra

  13. buy viagra cheap no prescription where can i buy viagra in manila buy viagra dhaka

  14. order viagra for men cheap generic levitra where can i buy cialis in london

  15. order viagra australia cheap cialis generic online cheap viagra sydney

Comment here