The Managing Director and Chief Executive of the Nigeria Deposit lnsurance Corporation, Umaru Ibrahim, says the corporation has of to date paid a cumulative sum of over N8.25bn to 442,999 depositors of closed Microfinance Banks, MFBs an about N70.53m to 869 depositors of Primary Mortgage Banks, PMBs in the country.
Ibrahim disclosed this at a forum to mark the corporation’s 30 years in Abuja, Nigeria.
He said since inception, the corporation has increased insurance cover for depositors in Deposit Money Bank’s, DMBs, in the country from N 50,000 to N500,000 by 2010 while PMBs and MFBs covers also went up from N100,000 in 2006 to currently N500,000 to stimulate mortgage savings in the system.
The NDIC boss also noted that between 1994 to date; 53 DMBs, 325MFBs and 51PMBs have been liquidated without disruptions in the nation’s financial system.
In the area of banking supervision, the corporation has collaborated with the apex bank to maintain a healthy financial system over the years, addressing issues in the sector via on-site examination and off-site surveillance.
In his words, ” NDIC and CBN, proactively respond to developments and challenges in banking operations through appropriate policy framework which have produced great results in the interest of the banking industry.”
” In the past 30 years, the corporation adopted several innovations to enhance internal control and strengthen it’s processes and procedures, including; sound risk management framework leading to the establishment of Enterprise Risk Management Department, adoption of sustainable banking principles, zero based budgeting and many other operational systems in line with international best practices.” He said.
The NDIC was established in 1989 to further cushion depositors against risk and compliment the role of the apex bank in supervising activities in the financial sector and maintaining a safe and sound banking system.