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The Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has revealed that the agency has refunded over N1.2 billion to about 34,000 depositors of 179 microfinance banks whose licences were revoked by the Central Bank of Nigeria (CBN).
Hassan, disclosed this yesterday, during the 2023 Sensitisation Seminar for Judges of National Industrial Court of Nigeria (NICN) and members of Investments and Security Tribunal, held in Port Harcourt.
Represented by the Executive Director, Operations, NDIC, Mustapha Ibrahim, Hassan explained that the seminar was imperative for stakeholders to understand the workings and nuances of NDIC and also its operational activities.
Speaking on the theme of the seminar, “Strengthening Depositors’ Confidence in Banks and Other Financial Institutions through Speedy Dispensation of Justice,” Hassan said the programme was anchored on the need for strategic partnering and collaboration with the judiciary for the promotion of financial System stability in Nigeria.
He said, “Our first mandate is deposit guarantee, in other words any deposit institution that we found, we have to guarantee payment of depositors.
“The recently closure of 179 microfinance banks and four primary mortgage institutions and we have been resolving them in an orderly manner.
“So far we have been able to settle over 34,000 depositors of microfinance banks whose licenses were recently revoked by CBN and we paid N1.2 billion to settle these 34,000 depositors of microfinance banks and it is still an ongoing process, liquidation is not something you accomplished in a day or two.”
The Chief Executive Officer of the NDIC, further stated that the statutory functions of corporation include Deposit Guarantee, bank supervision, distress resolution and bank liquidation, saying that upon the revocation of banking license, the NDIC has the statutory powers, to liquidate the insured financial institution whose license has been revoked.
He noted some of the challenges facing the NDIC included, “Execution of judgement against the Corporation for liabilities of banks in-liquidation. Attachment of the assets of the Corporation (NDIC) including garnishee of Corporation’s corporate accounts.
“Difficulties in recovery of debts owed the failed banks. Difficulties in bringing to book (criminal prosecution) directors, managers and officers of failed banks that might have contributed to the collapse of their banks.”
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