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Tag: NDIC

  • NDIC liquidates 427 financial institutions

    The Nigeria Deposit Insurance Corporation (NDIC), says it has liquidated 427 financial institutions as at December 2019.

    Mr John Abiodun, the Assistant Director, Insurance and Surveillance Department, NDIC, said this at the 2020 Finance Correspondents Association of Nigeria (FICAN) Annual General Meeting (AGM) and Forum in Abuja.

    Abiodun explained that the liquidated institutions comprised 51 Deposit Money Banks (DMBs), 325 Micro Finance Banks (MFBs) and 51 Primary Mortgage Banks (PMBs).

    He said through efficient and diligent liquidation activities, the corporation had successfully paid in full the deposits of the customers of 18 DMBs both insured and uninsured ones.

    The assistant director said payment to depositors of Fortune International Bank, Triumph Bank and Peak Merchant Bank was put on hold as at end of 2019 due to litigation challenging the revocation of their operating licenses.

    “You will recall that the Central Bank of Nigeria (CBN) revoked the operating license of the troubled Skye bank and NDIC resolved the problem of the defunct bank by using Bridge Bank Mechanism.

    “It was done through the establishment of Polaris Bank and ensured that depositors of defunct Skye bank continued to operate their accounts with the new bank,” he said.

    According to Abiodun, 6,000 jobs have been saved in the process when Polaris acquired Skye Bank.

    He said that Polaris bank was later acquired by Asset Management Corporation of Nigeria (AMCON) for subsequent sale to interested investors.

    Abiodun said in spite the success recorded in failure resolution, the NDIC’s effort in resolving failures had been impaired by some challenges.

    He identified delays in revocation of the licenses of terminally distressed banks, depositors and creditors appathy and ignorance as well as delays in filing claims as part of problems being experienced.

    According to him, others are the recovery of debts owed the failed banks, legal actions of owners of closed banks and protracted litigation.

    The assistant director reiterated the commitment of the corporation toward regulating the financial institutions in the country.

    He, however, underscored the need to regulate the banking institutions, adding that if the banks were not regulated and perhaps collapsed, other sectors of the economy would be affected.

  • FEC approves N5.72bn for NDIC projects

    FEC approves N5.72bn for NDIC projects

    The Federal Executive Council(FEC) has approved N5.72 billion for the construction of Nigeria Deposit Insurance Corporation’s (NDIC) zonal office in Bauchi and for 12 consultancy services for development of NDIC’s offices.

    Minister of Finance Zainab Ahmed disclosed this while briefing State House correspondents after FEC meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja.

    She said that the contract sum included Value Added Tax (VAT).

    “Today, the Ministry of Finance, Budget and National Planning, presented two papers to council.

    “The first paper that we presented to council and council approved was for the construction of the Nigeria Deposit Insurance Corporation (NDIC) zonal office in Bauchi.

    “The contract is in the sum of N3.239 billion including VAT; this project is to be completed in 96 weeks.

    “The NDIC has been operating from a rented office accommodation; the office accommodation has since become unconducive for a good working environment.

    “The corporation will therefore be saving money but also in building the office accommodation, when it is completed.

    “It will provide comfortable and clean environment for the staff to bolster morale as well as increase productivity.’’

    Ahmed said that, during the process, due approvals from the Bureau of Public Procurement were sought.

    The minister said that the second memo that was presented to council and council approved was also in respect of NDIC.

    She said it was for the award of contracts for 12 consultancy services for the development of NDIC Corporate head office annex in Abuja, its office in Ikoyi, Lagos as well as a training centre in Lekki, Lagos.

    “In 2015, FEC had approved the construction of these three buildings; so what we are asking for now is for the stage three, which is the construction phase of the work for the consultancies relating to architecture, structural, mechanical engineering.

    “ The total amount that is approved is the in sum of N2.489 billion.

    “ This is for 12 consultancy firms for three different categories of professional work for the three office buildings,’’ she said.

  • Liquidation: NDIC commences verification of Fortis Microfinance bank depositors

    All insured depositors of Fortis Microfinance Bank Plc have been asked visit branches of the financial institution in order to authenticate that they have funds in the bank.

    This became necessary after the Nigeria Deposit Insurance Corporation (NDIC) revoked the operating licence of the lender and officially liquidated it.

    As you read this article, operations of Fortis Microfinance Bank across the country have stopped as the bank is no more in existence.

    In a notice on its website, NDIC assured that those having their monies trapped in the bank will get them back.

    “The Nigeria Deposit Insurance Corporation (NDIC), the official Liquidator of Fortis Microfinance Bank whose license was recently revoked, has concluded arrangement to close the bank and its branches and pay the insured Depositors.

    “We are therefore calling all depositors of the bank to visit the bank’s branches and meet NDIC officials for the verification of their claims, commencing from Monday, 4th February, 2019 till Friday, 8th February, 2019,” the notice read.

    The agency also urged the bank’s depositors to check the NDIC’s official website for more information on how they can reclaim their funds.

    Fortis Microfinance Bank, a company listed on the Nigerian Stock Exchange (NSE) in 2012, has been having corporate governance issues.

    The NSE even had to suspend trading in the shares of the financial institution on its platform for failing to adhere to standard corporate governance and extant post-listing requirements that make it mandatory for quoted companies to submit their financial statements within stipulated timelines.

  • NDIC shutdowns Fortis Microfinance Bank

    The Nigeria Deposit Insurance Corporation (NDIC), has announced the official liquidation of Fortis Microfinance Bank and its branches nationwide.

    The corporation made this known in a press statement posted on its official website.

    It assured insured depositors of the repayment of their monies.

    The statement reads: “The Nigeria Deposit Insurance Corporation (NDIC), the official Liquidator of Fortis Microfinance Bank whose license was recently revoked, has concluded arrangement to close the bank and its branches and pay the insured Depositors.

    “We are therefore calling all depositors of the bank to visit the bank’s branches and meet NDIC officials for the verification of their claims, commencing from Monday, 4th February, 2019 till Friday, 8th February, 2019.”

    It would be recalled that Fortis Microfinance Bank, which was licensed by the Central Bank of Nigeria (CBN) in 2007 and listed on the Nigerian Stock Exchange (NSE) as the first private sector led Microfinance Bank in 2012, had its shares suspended from being traded on the floor of the NSE for failing to adhere to standard corporate governance and extant post-listing requirements that make it mandatory for quoted companies to submit their financial statements within stipulated timelines.

    It had also been grappling with protracted governance crisis and internal breakdown of management controls which ultimately led to the resignation of its interim Managing Director, Mrs. Bunmi Lawsan; now the eventual collapse of the bank.

    In 2017, the banks nine month’s interim results clearly showed that with a customer deposit of about N7.9 billion, it only had less than 10 per cent of its total deposit which amounted to N440 million in its bank accounts.

    The bank’s depositors are advised to check the NDIC’s official website for more information on how they can reclaim their funds.

  • Senate confirms Festus Keyamo, five others as NDIC members

    The Senate on Wednesday confirmed senior Nigerian lawyer, Festus Keyamo, as a member of the Nigerian Deposit Insurance Corporation (NDIC).

    It also confirmed Ronke Sokefun as Chairman and Garba Bello, Josef Okoloagu, Mustapha Mudashiru and Adewale Adeleke as members of the corporation.

    One other nominee, Garba Buba, was, however, not confirmed because he did not show up for screening.

    President Muhammadu Buhari had on May 8 written to the Senate seeking confirmation of the appointment of Mr Keyamo and the others.

    The Senior Advocate of Nigeria is currently the spokesperson for Mr Buhari’s reelection campaign organisation.

    His confirmation was made after the Senate considered and adopted the report of its committee on Banking, Insurance and other Financial Institutions.

    Rafiu Ibrahim (PDP-Kwara), who presented the report, said Mr Keyamo and the other nominees were cleared by the Code of Conduct Bureau.

    He also said after screening, the nominees were discovered to be resourceful, diligent, articulate, competent, have the knowledge to work in the positions for which they were nominated and also possess the needed value in the operations of the board of the NDIC.

  • Confirmation of Abike Dabiri-Erewa as NDC Chair suffers delay

    The Nigerian Senate on Wednesday failed to confirm Abike Dabiri-Erewa for appointment as Chairman and Chief Executive Officer of Nigerian Diaspora Commission (NDC).

    TheNewsGuru (TNG) reports the Senate referred the executive communication requesting her confirmation to the Committee on Diaspora.

    President Muhammadu Buhari had appointed Dabiri-Erewa as Chairman and Chief Executive Officer of the NDC early November.

    While reading Buhari’s letter to members of the chamber at the plenary, Senate President Bukola Saraki said the President had sought legislative approval for the appointment.

    At resumption of plenary on Wednesday, Senator Ahmad Lawan moved that “Senate do consider the request of Mr. President C-n-C on the confirmation of the nomination of Honourable Abike Dabiri-Erewa for appointment as Chairman/Chief Executive Officer of Nigerian Diaspora Commission in accordance with Section 2(1) of the Nigerian Diaspora Commission (Est, etc) Act, 2017”.

    Senator Emmanuel Bwacha seconds that the Senate do consider the request of Mr. President C-n-C on the confirmation of the nomination of Honourable Abike Dabiri-Erewa for appointment as Chairman/Chief Executive Officer of Nigerian Diaspora Commission.

    However, the executive communication requesting her confirmation was referred to the Committee on Diaspora to report back in 2 weeks.

    TNG reports the confirmation of the nomination of Mrs. Ronke Sokefun for appointment as Chairman of the board of the Nigerian Deposit Insurance Corporation (NDIC) also suffered a delay.

    Senate President Bukola Saraki referred the executive communication requesting her confirmation to the Committee on Banking and Insurance to also report back in 2 weeks.

     

  • Beware of “wonder banks”, NDIC warns Nigerians

    The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to be wary of “wonder banks” that give extraordinary interest rates and profits on investments.

    Its Managing Director, Alhaji Umaru Ibrahim, gave the advice in an address at the NDIC Special Day at the ongoing 29th Enugu International Trade Fair in Enugu on Thursday.

    Umaru, who was represented by NDIC Director of Strategy Development, Mr Festus Ekechi, said many Nigerians had continued to lose fortunes and even their life savings to Ponzi schemes and other illegal fund managers with disastrous consequences.

    “The corporation’s activities, through the supervision of banks, continuous monitoring and oversight, serves as consumer protection for depositors (in legal banks) which enhances confidence in the financial system.

    “This acts as an incentive for the unbanked to access financial services of licensed banks.

    “Poor and uninformed depositors need assurance that the services of licensed deposit taking institutions are safe and that they have access to their money whenever they need it,” he said.

    The NDIC managing director said the NDIC was determined to ensure the safety and soundness of the nation’s financial system.

    According to him, the key mandate of the corporation is to provide deposit guarantee to depositors of insured financial institutions, banks supervision, distress resolution, and bank liquidation.

    He said that since inception, NDIC had grown from strength-to-strength in ensuring that the over-riding public policy objectives for establishing a deposit insurance system in the country were realised.

    “With the protection of depositors in mind, the Maximum Deposit Insurance Coverage (MDIC) per depositor per bank progressively increased from N50, 000 in 1989 to its current N500, 000 per depositor per Deposit Money Banks (DMBs).

    “Similarly, the insured limit for Micro-Finance Banks (MFBs) and Primary Mortgage Banks (PMBs) in 2009 was increased from N100, 000 to N200, 000 per depositor per MFB/PMB in 2010.

    “However, on August 4, 2016, the Minister of Finance approved an upward review of the deposit insured limit for depositors of PMBs to N500, 000 in order to ensure coverage of over 90 per cent of depositors in the banking sub-sector.

    “It is pertinent to point out that depositors who have funds in excess of the insured limit are entitled to liquidation dividend after recovery of debts and sales of physical assets of the closed banks,” he said.

    Earlier, the President of Enugu Chamber of Commerce, Chief Emeka Udeze, had commended NDIC for always partnering with the chamber to educate the banking public on the safety of their bank deposits.

    Udeze said that NDIC remained resolute in the protection of depositors’ funds within banks and other financial institutions in the country.

    “The NDIC has helped to build confidence amongst bank depositors, thereby helping to stabilise the Nigerian financial system,” he said.

    The fair, which has entered its 7th day, has its theme as “Engendering the Competitiveness of Nigerian Products in the Global Market.”

  • Ignore rumours of financial distress in Banks – NDIC MD

    Ignore rumours of financial distress in Banks – NDIC MD

    The Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, has urged the public to ignore rumours of financial distress in some banks.

    A statement by the NDIC said that rumours were being circulated via text messages and social media to de-market those banks and destabilise depositors’ confidence in the banking system.

    The statement, signed by its spokesman, Hadi Birchi, said that the NDIC boss made the call when the Alumni Association of the National Institute (AANI) paid him a courtesy in Abuja.

    He said the NDIC had over the years played critical role in ensuring that Nigerian banks were safe and sound through effective supervision and assistance to deserving financial institutions.

    Ibrahim said the NDIC had continued to closely monitor the challenges facing the industry in order to further safeguard depositors’ interest in the banking system.

    He listed challenges affecting the banking industry to include, poor corporate governance, insider loans and non-performing loans.

    He said that with NDIC’s strict supervision and regulation of the banking industry in collaboration with CBN, depositors should have full confidence in the safety and security of their funds in licensed banks.

    Ibrahim said the NDIC in collaboration with other stakeholders were proposing the establishment of a Centre for Financial and Economics Studies at the National Institute for Policy and Strategic Studies (NIPPS), Kuru.

    According to the NDIC boss, the centre would train participants in essential areas of financial and economic management.

    Earlier, Mr Bola Balogun, Chairman, AANI Abuja Chapter, commended the NDIC for its supervisory role, describing it as an invaluable anchor for the security and stability of the nation’s financial system.

    Balogun also lauded NDIC’s efforts toward protection of depositors’ funds and consumer protection activities.

     

     

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