By Tony Obiechina, Abuja
The Nigeria Deposit Insurance Corporation (NDIC) said it has do far paid a cumulative sum of over N10 billion as insured amount to over 527,283 depositors of deposit money banks (DMBs), micro finance banks (MFBs) and Primary Mortgage Banks (PMBs).
Giving a break down of the figures at a press conference in Abuja on Friday, the Managing Director of NDIC, Umaru Ibrahim said N8.25 billion was paid to 442,999 DMBs, N2.97 billion to 83,415 depositos of DMBs and N70.53 million went to 869 PMBs.
Ibrahim who was addressing the Press on activities lined up to mark the 30th Anniversary of the Corporation said the NDIC collaborates with the Central Bank if Nigeria, “to ensure that the Institutions remain healthy at all times and/or where there are problems ,they are detected and addressed promptly”.
Represented by the Director, Communication and Public Affairs, Dr Sunday Oluyemi, the MD pointed out that supervisory roles of the corporation are carried out through a combination of On-site Examination and Off-site Surveillance.
” The collaboration between CBN and NDIC over the years has reduced the bank examination cycle, enhanced monetary policy. promoted safe and sound banking practices as well as assist in resolving Troubled Finsnciak Institutions”, he stated.
Ibrahim who recalled that at the inception of NDIC in 1989, the banking system was already in distress with seven technically insolvent state-owned bank, however noted that “this is one area in which NDIC continues to demonstrate great ingenuity and sagacity”.
The NDIC boss disclosed that the corporation through Bridge Bank mechanism safeguarded 12, 667 jobs which ought to have been lost and protected over N1.759 trillion depositors’ funds from being trapped in distressed banks.
He said the corporation has in collaboration with the CBN relied on multiple resolution options to resolve failures in banking system which include: Open Bank Assistance (OBA), Purchase and Assumption (P &A), Bridge Bank and reimbursement (pay out) of insured depositors.
According to the Managing Director “The NDIC used Purchase and Assumption (P & A) to resolve problems of 13 banks closed by the CBN in 2006 as a result of their inability to meet the Consolidation/Recapitalization requirement of N25 billion.
“The P&A option was adopted by the Corporation to resolve the problems of banks affected by the Global Financial Crisis of 2009, which manifested in poor Asset Quality and Weak Risk Management, as well as weaknesses in Corporate Governance.
“Furthermore, in the discharge of its statutory role under Section 39 (i) of the NDIC Act 16 of 2006 and in consultation with the CBN, the Corporation adopted the Bridge Bank mechanism to resolve the failure of three (3) DMBs namely Afribank, Spring Bank and BankPHB in 2011.
“Similarly, in 2018, that mechanism was used to resolve the failure of Skye Bank Plc. Indeed, the merits of the bridge bank to the nation’s economy are numerous.
“It should interest you to note that the bridge bank initiative safeguarded 12,667 jobs, protected deposit liabilities of over ₦1.759 trillion which ensured that depositors had uninterrupted access to their funds, and prevented the systemic repercussions of the failure of the bank on the entire financial system.
“The Bridge bank option engendered macro-economic stability, sustained daily operations of the failed banks including meeting maturing obligations and enhanced the confidence of Depositors and other Stake holders.”
In respect of Bank liquidation, Ibrahim said between 1994 to date, 53 DMBs, 325 MFBs and 51 PMBs were put under liquidation without disruption to the nation’s payment system.
Giving statistics, he listed that to date, a cumulative amount of over ₦29.112 billion was recovered from debtors of DMBs in-liquidation; ₦129.10 million was realized from debtors of failed MFBs, while that of PMBs stood at N300 million.
On realisation of assets, he said currently ₦21.502 billion was collected from the disposal of physical assets of closed DMBs, while N404.74 million and ₦78.17 million were realised in respect of MFBs and PMBs, respectively.
Further, he said debt collection and assets sales culminated in the payments of over ₦116.258 billion as Liquidation Dividends to Depositors, Creditors and Shareholders of closed DMBs, MFBs and PMBs as at today.
On the activities marking the Corporation’s 30th Anniversary celebration, the Managing Director said it include:
- Special Anniversary prayers during the Juma’at Prayers at the National Mosque in Abuja Friday, 18th October, 2019;
*On Saturday, 19th October, 2019, Anniversary Health Walk and Novelty Football Match between the Corporation and Debt Management Office (DMO) staff;
*Special Anniversary Thanksgiving Service on Sunday, 20th October, 2019, at the National Ecumenical Centre, Abuja.
The climax of the Anniversary celebrations will be the NDIC 30th Anniversary Public Lecture/Book Presentation to be crowned with Anniversary dinner on Monday.
