In Nigeria, the Nigeria Deposit Insurance Corporation, NDIC, provides deposit insurance protection to depositors of: 33 Deposit Money Banks, DMBs, which are made up of 24 Commercial Banks, Six Merchant Banks and Three Non-Interest Banks, NIBs; 882 Microfinance Banks, MFBs; 34 Primary Mortgage Banks, PMBs; 3 Payment Service Banks, PSBs; and 29 Mobile Money Schemes.
The NDIC as one of the resolution authorities in Nigeria, has adopted different resolution mechanisms in resolving the failure of distressed deposit-taking financial institutions in the country.
The Managing Director/Chief Executive Officer, NDIC, Bello Hassan, stated the above at the just concluded International Association of Deposit Insurers, IADI, Africa Regional Committee, ARC, Workshop Hosted by the NDIC at in Abuja.
The NDIC Act 22 of 1988 repealed and re-enacted in 2006 according to him created the Nigeria Deposit Insurance Corporation, NDIC, as a government agency charged with the responsibility for implementing DIS in Nigeria. As a risk minimizer, the NDIC continues to enjoy close collaboration with other safetynet participants in the financial sector, especially the CBN.
“In Nigeria, the NDIC provides deposit insurance protection to depositors of: 33 Deposit Money Banks, DMBs, which are made up of 24 Commercial Banks, Six Merchant Banks and Three Non-Interest Banks, NIBs; 882 Microfinance Banks, MFBs; 34 Primary Mortgage Banks, PMBs; three Payment Service Banks, PSBs; and 29 Mobile Money Schemes. Distinguished participants, the NDIC as one of the resolution authorities in Nigeria, has adopted different resolution mechanisms in resolving the failure of distressed deposit-taking financial institutions in the country”, he said.
The liquidation activities of the NDIC involved 467 insured banks in-liquidation, comprising 49 DMBs, 367 MFBs, and 51 PMBs, at end-December 2021.
“The successes recorded by the NDIC in the execution of its mandate, would not have been possible without the strong support and collaborative efforts of other financial safety-net players in Nigeria like the CBN, the Federal Ministry of Finance, Budget and National Planning and other members of the FSRCC”, he noted.
Speaking further, the Chief Executive Officer said the Corporation is a member of the FSRCC, an inter-agency body set-up to coordinate the supervision of financial institutions and deal with matters of common interest and concern to the various regulatory and supervisory authorities in the Nigerian financial services industry. 10. At the global level, the NDIC has continuously improved on its collaborative efforts and capacity building in achieving its mandate even in turbulent economic periods.
“The NDIC had engaged with relevant stakeholders by executing various Memorandum of Understandings, MoU, with other deposit insurance agencies, learning from publications/Guidance Notes of IADI and related institutions, exchange of technical assistance, sponsorship of attachment programmes and training programmes”, stressed the CEO.
