The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Dr Thompson Sunday, has reiterated its commitment to protecting depositors funds and strengthening financial system stability through the Nigerian government’s reform programmes
Speaking during a second-quarter citizens and stakeholders’ engagement session, at the Federal Ministry of Finance in Abuja on Monday, Dr. Sunday said that the engagement reflected NDIC’s commitment to transparency, accountability and educating Nigerians on its statutory responsibilities and contributions to national development.
He explained that the NDIC Act of 2023 empowered the corporation to guarantee deposits, supervise banks, resolve distressed institutions and liquidate failed banks.
Sunday added that the deposit insurance protected customers by guaranteeing deposits whenever a bank’s licence is revoked by the Central Bank of Nigeria (CBN).
According to him, NDIC supervises banks jointly with the CBN through on-site examinations and off-site surveillance to safeguard financial stability.
Mr. Sunday said that the corporation also resolved distressed banks before they collapse, while ensuring orderly liquidation of institutions whose licences have been withdrawn.
He said that NDIC’s vision was to rank among the world’s leading deposit insurers through effective supervision, prompt reimbursement and financial system stability.
The NDIC boss said that the corporation supported the Renewed Hope Agenda by promoting economic stability, financial inclusion, digital finance and protecting vulnerable depositors.
He said the 2023 NDIC Act aligned with the country’s deposit insurance framework with international best practices under the International Association of Deposit Insurers.
According to him, the Act prioritises depositors over creditors and shareholders during bank liquidation, ensuring faster access to insured funds.
Mr. Sunday said that the law strengthened NDIC’s powers to resolve failing banks, recover assets and prosecute those responsible for bank failures.
He said that deposit insurance coverage was increased significantly to strengthen public confidence and deepen financial inclusion.
The NDIC boss said that the coverage for deposit money banks rose from N500,000 to N5 million, while microfinance and primary mortgage banks increased from N200,000 to N2 million.
GIK/APA