Market News

By Saxone Akhaine, Kaduna

The Nigeria Deposit Insurance Corporation (NDIC) has said that in the past three decades, its activities have contributed to safeguarding against bank failures and promoting stability in the financial system.

The Managing Director of NDIC, Bello Hassan, said this at the Corporation’s Special Day at the 46th Kaduna International Trade Fair on Thursday.

Hassan said that NDIC will strengthen its commitment to ensuring a stable financial environment that safeguards depositors and builds public confidence, enabling businesses to thrive and contribute to the nation’s economic development.

According to Hassan, “for over three decades, NDIC has played a pivotal role in safeguarding depositors, particularly the mostly vulnerable and fortifying the financial system.”

The Managing Director, who was represented by the Area Controller of NDIC in Kano State, Ahmed Umar, pointed out that the Corporation will continue to monitor the activities of banks in the country, in ensuring that they fall in line with its objectives including “insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event bank failures.

“The NDIC has consistently played a crucial role in maintaining financial stability by ensuring that depositors receive prompt compensation when banks fail.”

While citing a recent example of bank failure, he noted “the revocation of Heritage bank’s operating license on June 3, 2024, where the NDIC reimbursed depositors within four days using their Bank Verification Numbers (BVN).”

Hassan stressed, “This swift action has enabled the payment of insured amounts to all depositors other than those with no alternate accounts in other banks or those depositors whose accounts have Post No debits (PND) instructions or BVN.

“These categories of depositors are being contacted by the Corporation through telephone calls and text messages to come forward for verification.”