How we saved 6,000 jobs in defunct Skye bank ― NDIC

The Nigeria Deposit Insurance Corporation (NDIC)  has said the corporation was able to save 6,000 workers from being dismissed from defunct Skye bank (now Polaris) as a result of poor handling of the operations of the bank by former management.

This was disclosed by the Managing Director of the corporation, Alh Umaru Ibrahim while speaking at the Special day of the NDIC at the ongoing 40th International Trade Fair holding in Kaduna on Thursday.

Represented by the Head of Communications and Public Affairs department of the corporation, Alh Muhammad Kudu Ibrahim noted “It is on record that the Bridge Bank resolution option adopted by the Corporation in the case of the defunct Skye Bank saved over 6000 jobs in the industry and also ensured that normal operations continued in all the 277 branches of the bank.”

In addition,  the resolution option utilised which was completed with the establishment of the bridge bank now called the Polaris Bank ensured that depositors of the closed banks had unhindered access to their deposits in excess of N949.60 billion as at June 2018.

ALSO READ: Stop purchasing illegally-refined crude oil products, DPR warns depot owners

According to him, the corporation has also taken measures to ensure that all those who contributed to the failure of the bank are prosecuted through the appropriate legal means to serve as a deterrent to others.

More so, in February this year,  a Lagos Federal High Court sentenced the managing director of the failed integrated microfinance bank (IMFB) plz, Mr Simon Ademola Akinteye to 32 years imprisonment over frauds that led to the failure of the banks.

The corporation has also been relentless in its debt recovery efforts particularly the debts owed to banks in liquidation so as to enhance payment of liquidation dividends to depositors whose balances are in excess of the insured limits.

Also in 2018, a total of N526, 397, 116.26 was recovered in respect of deposit money banks in liquidation, N51,159,867.97 and N710, 057.83 from primary mortgage banks and microfinance banks respectively. The cumulative recovery from debtors of deposit money banks,  microfinance banks and primary mortgage banks as at December 31, 2018, stood at N29.01 billion, N125.84 million and N290.43 million respectively.

These efforts were boosted by a series of judgements obtained against banks in liquidation and realisation of physical assets of closed banks, apart from the conviction of the MD of the defunct integrated MFB,  the Corporation also secured a landmark judgement against the First Bank of Nigeria Plc, to the tune of N556,493,034.16 in favour of depositors of Lead Merchant Bank Limited (in liquidation).

As the corporation will mark it’s 30th anniversary this year, it has been three decades of resilient hard work and continuous innovations in order to achieve our goal of becoming the best Deposit Insurer in the world by the year 2020. We may not be there but the NDIC already has become a reference point in the implementation of the DIS in Africa and beyond. He said.

The NDIC also reinstated its commitment towards achieving a safe sound and stable financial system which is geared towards sustainable economic growth.

Adding,  this year’s theme “consolidating interface between industry and agriculture for Nigeria’s sustainable development” strongly supports the federal government initiative of unleashing the full potentials of the nations agricultural  sector to drive employment generation,  robust revenue base and sustainable growth of the economy assignment stipulated in the economic recovery growth plan (ERGP).