function wpb_disable_feed() { wp_die( __('No feed available,please visit our homepage!') ); } add_action('do_feed', 'wpb_disable_feed', 1); add_action('do_feed_rdf', 'wpb_disable_feed', 1); add_action('do_feed_rss', 'wpb_disable_feed', 1); add_action('do_feed_rss2', 'wpb_disable_feed', 1); add_action('do_feed_atom', 'wpb_disable_feed', 1); add_action('do_feed_rss2_comments', 'wpb_disable_feed', 1); add_action('do_feed_atom_comments', 'wpb_disable_feed', 1); NDIC Begins Verification, Payment Of 154 Defunct MFBs | Leadership Newspaper
Connect with us
Advertise With Us


NDIC Begins Verification, Payment Of 154 Defunct MFBs




…Says N949bn saved from defunct Skye Bank

The Nigeria Deposit Insurance Corporation (NDIC) has said it will soon commence the pay-off of depositors of the 154 Microfinance Banks (MFBs) and six Primary Mortgage Banks (PMBs) whose licences were revoked by the Central Bank of Nigeria (CBN).

The managing director and chief executive of the NDIC, Umaru Ibrahim while speaking at the opening ceremony of a workshop for business editors and financial correspondents in Benin yesterday, said the corporation will be paying 100 per cent of the funds of the depositors of the financial institutions.

Ibrahim who was represented by the director, Insurance and Surveillance Department, Muhammed Umar, noted that the NDIC has commenced verification of insured depositors and is to commence paying verified claims to appropriate depositors in fulfilment of its core mandate.

According to him, records form the verification process showed that majority of the depositors especially in the MFBs, have less than N200,000 in their accounts. This he said means that the NDIC payout will cover 100 per cent of the depositors.

Some of the financial institutions whose licenses were revoked had ceased to carry on the type of banking business for which their licenses were issued for a continuous period of more than six months while others had gone into voluntary liquidation.

The affected institutions were closed because some were found to have insufficient assets to meet their liabilities, while others had their capital to risk-weighted assets ratio and regulatory capital below the minimum prescribed by the CBN.

Ibrahim assured that the NDIC will continue to work closely with CBN to ensure effective supervision of the banks so as to ensure strict adherence to rules and regulations guiding banking operations. This is with a view to protecting depositors against fragrant disregard of extant rules by management of financial institutions thereby mitigating the occurrence of unlawful insiders’ dealings, weak internal control and overall non-compliance to prudential guidelines.

He further noted that the NDIC, in collaboration with all relevant key players in the nation’s financial system, will continue to work on several initiatives to accelerate financial literacy and financial inclusion, especially among rural communities nationwide so as to promote inclusive growth in Nigeria.

Ibrahim also disclosed that the corporation through the bridge bank (Polaris bank) was able to guarantee the seamless and continuous banking operations in the 277 branches of the defunct Skye bank with over 6000 jobs saved and depositors have unhindered access to deposit in excess of N949.60 billion as at June 2018.

Speaking on the theme “Financial inclusion, consumer protection and the evolution of virtual currencies in Nigeria,” Umar said some of the emerging issues in the financial service industry include the proliferation of financial technology, financial consumer protection, financial inclusion, digital/mobile banking and the evolution of digital currencies.

Elaborating on the issue of financial inclusion, the director general of National Pension Commission Aisha Dahir-Umar who was represented by Mr. Peter Aghaowa said the commission has rolled out the micro pension scheme aimed at self-employed persons who can contribute for their pension. “To make it easy for entrepreneurs who would opt for the scheme, we make it possible for them to  access 40 per cent of the funds contributed when they need the funds. Similarly, we are creating a window that would allow retirement savings account (RSA) holders to transfer from one pension fund administrator (PFA) to the other. However, we are currently working on out data base to ensure we do not duplicate accounts,” he said.

Speaking on the evolution of virtual currencies, deputy director of research in NDIC Dr. Kabir Katata warned Nigerians of the dangers and enormous risks involved in trading digital currencies. He emphasized that the currencies are not regulated by the CBN and also have no insurance coverage from the NDIC. He called on all Nigerians to desist the temptation of investing their hard earned funds in such currencies.



%d bloggers like this: