The distribution of 100% liquidation dividends to uninsured depositors of over 20 deposit money banks under liquidation was made possible, according to the Nigeria Deposit Insurance Corporation (NDIC), which stated that it had boosted its debt recovery rate and intensified its liquidation actions.
This was said by Bello Hassan, Managing Director/Chief Executive, NDIC, during the opening ceremony of the 2023 NDIC Editors Forum, which took place over the weekend in Lagos.
According to Hassan, the organization improved the prompt payment of insured amounts to depositors of closed banks by introducing the Single Customer View (SCV) structure.
According to him, the NDIC’s improved cooperation with the judge and bar has resulted in quicker prosecution and better-informed decisions on bank case failures.
According to Hassan, this also involved the resolution of drawn-out cases involving closed banks, like Fortune and Triumph Banks’ in-liquidation. It also involved putting in place a policy and framework for out-of-court settlement, which allowed the company to settle some previously ongoing unsuccessful bank litigations.
In addition to the CBN’s consumer protection initiatives, he said, the NDIC has raised public knowledge of deposit insurance and financial literacy, which has lowered the rate at which small depositors are being cheated and raised public trust in the banking system.
According to Hassan, the Central Bank of Nigeria’s (CBN) efforts to establish a safe and stable banking system are bolstered by the NDIC’s operations, which are centered on minimizing bank runs and failures through stringent banking supervision, reimbursement of insured depositors in the event of bank failure, and orderly liquidation of failed banks.
According to him, it also helps the fiscal authority uphold stability in the larger financial system, which forms the basis for economic expansion and advancement.
According to Hassan, the NDIC’s Deposit Insurance System is a crucial part of the country’s financial safety net.
According to him, the editors’ forum’s main goals are to promote active cooperation, raise public knowledge, and bolster trust in Nigeria’s Deposit Insurance System, all of which support the stability of the country’s financial system as a whole.
But Hassan also emphasized the importance of the media in fostering the stability of the financial system, the sufficiency of deposit insurance coverage, and quicker depositor compensation in the case of a bank failure.
“In fact, the NDIC’s unwavering efforts to realize its objective of being among the greatest deposit insurers in the world are the foundation of our extensive experience at the forefront of deposit insurance practice in Africa as well as the Corporation’s resilience in the face of obstacles and dangers.
“The comprehensively presented roadmap, found in our 2021–2025 Strategic Plan, accounts for both present circumstances and emerging trends. It also establishes goals and objectives to guarantee that the Corporation carries out its mandate by offering outstanding and effective services to all of our stakeholders,” the speaker said.
In addition, Hassan emphasized the corporation’s numerous special recognitions and awards from reputable organizations and bodies among the community of Ministries, Departments, and Agencies (MDAs), which he claimed provide strong proof of the management and staff’s unwavering dedication to enacting a paradigm shift in order to fulfill the NDIC’s mandate.
NDIC raises the pace of debt collection
- Ken Ibenne
- December 18, 2023
- 10:42 am
