NDIC Introduces Framework to Expedite Payment of Liquidated Banks’ Depositors

The Nigeria Deposit Insurance Corporation (NDIC) has introduced the Single Customer View (SCV) framework to expedite payment to depositors of closed banks.

Managing Director and Chief Executive of the Corporation, Mr. Bello Hassan, disclosed this at the ongoing 45th Kaduna International Trade Fair yesterday. He said the priority of the NDIC is to protect Nigerian depositors.

"We are dedicated to safeguarding depositors' funds from the adverse effects of bank failure and complementing the Central Bank of Nigeria (CBN) in effectively supervising insured deposit-taking financial institutions and formulating sound banking policies," he said.

Bello said the NDIC has significantly improved its processes to ensure swift payment of insured sums to depositors in the event of bank failure.

"The corporation has introduced the SCV framework to expedite payment to depositors of closed banks," he said.

Bello, who was represented at the occasion by Hauwa Gambo Jimeta, a senior official of the corporation, said the NDIC, had enhanced collaboration with the judiciary for speedy prosecution of failed insured institutions.

"This concerted effort has resulted in resolving long-drawn cases of closed banks such as Fortune and Triumph Banks, in liquidation.

"Moreover, we have utilised Alternative Dispute Resolution (ADR) mechanisms and out-ofcourt settlements, revitalising our liquidation activities. These efforts have significantly improved our debt recovery rate, enabling us to declare 100 per cent liquidation dividends to uninsured depositors of more than 20 deposit money banks in liquidation", the NDIC boss said.

He added that the corporation had continually strengthened the systems, processes, and procedures to enhance transparency and accountability across its operations.

"Notably, the corporation achieved remarkable success in reimbursing depositors during the recent closure of 179 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs), ensuring timely payment of insured sums.

"We also deployed digital remote payment strategies to facilitate electronic funds transfers to verified depositors' alternate bank accounts.

"It is essential to emphasise that payments are ongoing, with depositors holding funds exceeding the insured limit set to receive liquidation dividends following debt recovery and asset sales.

"I urge depositors of banks in liquidation to utilise these initiatives to claim their funds trapped in closed banks. Rest assured, NDIC remains committed to protecting Nigerian depositors and striving to be one of the best deposit insurers globally," Bello said.