NDIC provided insurance cover to 109.3 million bank accounts in 2018

THE Nigeria Deposit Insurance (NDIC) has revealed that the number of fully covered accounts at ?500,000 in Deposit Money Banks (DMBs) increased from 96,760,687 in 2017 to 109,305,169 in 2018.

This, according to the corporation represented an increase of 12.96 per cent, bringing the number of fully covered accounts that fell within the ?500,000 guaranteed limit to 97.59 per cent of all depositors in licensed DMBs.

The NDIC in its recently released annual report and accounts stated that the premium rate applied was 0.45 per cent.

This was the mean rate applied to both the DMBs and Primary Mortgage Banks (PMBs) in 2018, while the flat-rate premium assessment method was used for the Microfinance Banks (MFBs) due to inability to properly assess all the risk factors for all the MFBs in operation.

In 2018, the sum of ?92.45 billion was collected as premium from the DMBs, just as the sum of ?306.24 million was collected from the Non-Interest Banks (NIB) and ?1.065 billion from the MFBs and PMBs the deposits insurer stated.

The report further disclosed that Deposit Insurance Fund (DIF) grew by 14.66 per cent from N955.18 billion as at  December 31, 2017 to N1,095.23 billion as at  December 31, 2018.

The Special Insured Institutions Fund (SIIF) increased by 10.72 per cent from ?99.24 billion as at December 31, 2017 to ?109.88 billion as December 31, 2018, while Non-Interest Deposit Insurance Fund (NIDIF) increased by 43.47 per cent from N693.70 million as at December 31, 2017 to N999.94 million as at December 31, 2018.

According to the NDIC, the Total Insurance Fund of N1.206 trillion fell short of its Estimated Insurance Fund Risk Exposure of N3.32 trillion as at December 31, 2018.

On supervision, the NDIC hinted that during the year, the corporation and Central Bank of Nigeria (CBN) jointly conducted the Risk Assets Examination of 26 DMBs to assess the risk assets’ quality, review the adequacy of their loss provisions and risk-weighted capital ratios as prerequisite for the approval of their 2017 annual reports by the CBN.