The NDIC) said it has fully paid all depositors of the 18 failed banks their deposits.
It stated it paid creditors and shareholders of the banks N4.987 billion as liquidation dividends.
NDIC Managing Director /Chief Executive, Alhaji Umaru Ibrahim, disclosed these on Thursday in Kaduna.
He informed NDIC in January developed a new Fintech and Innovation Unit, a technology driven solutions to protect depositors and improve the safety of the financial system.
Addressing the NDIC Day at the 41st Kaduna International Trade Fair with the theme: ‘Consolidating Interface Between Industry and Agriculture for Nigeria’s Sustainable Development’, Ibrahim, who was represented by the Director Communications and Public Affairs Department, Dr Sunday Olayemi, warned the public against transacting any business with banks that are not licensed by the CBN, particularly the wonder banks.
“To date, the NDIC has fully paid all the depositors of 18 closed Deposit Money Banks all their monies (both insured and uninsured) that were trapped in such banks. Creditors and shareholders of the closed banks had also been paid liquidation dividends to the tune of N4.987 billion as at 31st December, 2019.
“We are aware that for agriculture to recapture its previous position as the top revenue earner for the nation, our famers at all levels will require safe and secured access to financial services, especially at the grassroots levels.
“As a critical pillar in the Nigerian Financial System, NDIC will continue to promote the much needed interface between industry and agriculture by working to ensure a safe, sound and stable banking sector that offers strong support to the agricultural sector.
“The NDIC and CBN have been taking steps to strengthen the operations of the Microfinance Banks (MFBS) with a view to making them relevant to the needs of farmers. The MFBS have been re-categorized with different capital requirements.
“The Corporation and the CBN are financing the development of the National Microfinance Banks Unified Information Technology (NAMBUIT) platform designed to address the challenge of technology in the operations of MFBS. The platform will reduce IT cost by the banks, ease reporting to regulatory authorities and reinvigorate their operations. A total of 110 MFBS had on-boarded the platform as at 31st December, 2019.
“In addition, as a critical component of the Nigerian Financial Safety-Net, a crucial public policy objective of the Corporation is the protection of depositors of licensed banks as well as promoting public confidence in the financial system.” Umaru Ibrahim said.
He said the Corporation has developed a framework for deposit insurance cover up to N500,000 per depositor of Payment Service Banks recently granted license in principle by the Central Bank of Nigeria.
