NDIC renews commitment to partnering with CBN on banks’ supervision

THE Nigeria Deposit Insurance Corporation (NDIC) has said it will continue to work with the Central Bank of Nigeria (CBN) to ensure effective supervision of banks and the adherence to prudential guidelines.

It also said that in order to ensure that the lenders’ adhere to the code of corporate governance for banks as well as safety and overall stability of Nigerian financial system, the corporation will continue to collaborate with the CBN.

The Managing Director/ Chief Executive Officer, NDIC, Umaru Ibrahim, disclosed this during the NDIC’s special day at the 33th edition of Lagos International Trade Fair.

He disclosed that the corporation has extended its insurance coverage to subscribers of Mobile Money Operators to the maximum limit of N500,000.

According to Ibrahim, the theme of this year’s trade fair complements the federal government’s initiatives on developing businesses critical to growing the economy especially at the grassroots.

Being an important player in the Nigerian Financial System, he said NDIC supports the growth of businesses through the robust supervision of Insured Deposit Taking financial institutions in Nigeria.

He further noted, “One of the most significant achievements of the corporation is the provision of the deposit insurance coverage to subscribers of Mobile Money Operators to the maximum limit of N500,000 through the pass-through deposit insurance framework.

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“As it stands, the number of licensed MMOs by the Central Bank of Nigeria is 23, with eight being bank-led and the remaining 15 non-bank-led. As of 30th June, 2019, the number of subscribers to the MMOs stood at 9,249,265.”

As provided in the NDIC Act 2006, Ibrahim explained that when insured financial institutions failed, depositors of Deposit Money Banks, Non-Interest Banks and Primary Mortgage Banks were reimbursed up to a maximum limit of N500,000, while the maximum insured coverage for depositors of microfinance bank would be N200,000.

However, he added, the insured limits were periodically reviewed by the board of the corporation to ensure that majority of depositors were covered.

As of June, he said the corporation received a total number of 35 petitions and complaints from bank customers on various issues such as the ATM frauds, unauthorised fund transfers, cheque related issues and much more.

Ibrahim said investigations and mediation were carried out where necessary and customers were appropriately reprieved.

Following the issuance of the framework for the licensing and regulation of Payment Service Banks by the CBN which stipulated the extension of deposit insurance coverage to the depositors, he said the corporation had designed an appropriate differential premium assessment system matrix for premium computation payment, adding that the NDIC also set an insurable limit for the depositors in the event of failure.

Ibrahim stated further that, the corporation took the measures so as to engender confidence in the system and discourage bank customers from keeping cash at home, shops and other places outside the banks.

Also speaking, the LCCI President, Mr Babatunde Ruwase observed that the success story of Nigeria’s financial services sector cannot be complete without mention of the safety net players. He added that LCCI appreciates the NDICs resolve to manage emerging distress in the banking industry.

Nigerian Tribune