NDIC has invigorated liquidation activities, increased debt recovery rate, says Hassan

 The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan in highlighting some of its 2021 – 2025 Strategic Plan achievements in the financial sector said the Corporation has invigorated its liquidation activities, and greatly increased debt recovery rate leading to declaration of 100 per cent liquidation dividends to depositors of over 20 deposit money banks in-liquidation.

Speaking at the opening ceremony of the 20th edition of the workshop for business editors and members of the Finance Correspondents Association of Nigeria (FICAN) in Imo state on Wednesday, Hassan said in complementing the consumer protection efforts of the Central Bank of Nigeria (CBN), the Corporation has enhanced public awareness on the benefits and limitations of the deposit insurance system and financial literacy, stating that it has reduced the rate at which small depositors are being defrauded, thereby enhancing confidence in the banking system.

The 2023 workshop is theme: “Stocktaking of Deposit Insurance Practice: Assessing the Past, Evaluating the Present and Forecasting the Future”.

Hassan said the Corporation in harmony with the vision: “To be one of the best deposit insurers in the world”, launched the 2021 – 2025 Strategic Plan, in consideration of current realities and trends, said NDIC has improved its systems, processes, and procedures to promote transparency and accountability in operations, amongst other humble achievements.

He noted that NDIC as a critical component of the financial safety net, has continued to play critical roles in complementing the drive of the CBN, in promoting stability in the financial system.

“This becomes more significant for the NDIC with a broad mandate of Risk Minimizer. As expected, the Deposit Insurer has always been impacted by the challenges that confront the financial system at various times.

“Though some of the challenges are universal, others are however, unique. The desire to strengthen our banks through prudential thresholds and other regulatory instruments, calls for collaboration with all relevant stakeholders in the Nigerian financial system,” he said.

He expressed that the workshop has been organized to share thoughts, knowledge and experience together with journalists   as critical stakeholders, with a view to defining a brighter and insightful future for the practice of DIS in Nigeria.

In expressing further achievements,  he said, “We have introduced the Single Customer View (SCV) framework that has enhanced speedy payment of insured sums to depositors of closed banks; we have enhanced collaboration with the bar and the bench, leading to speedy dispensation of justice and more informed judgements on failed banks cases; we have equally put in place policy and framework on Alternative Dispute Resolution for out-of-court settlement, which had enabled us to resolve some hitherto protracted failed bank litigations; we have reviewed the Framework for Differential Premium Assessment System (DPAS) to make it more risk sensitive and account for significant developments that have taken place in the Nigerian banking system since its adoption in 2008; and we have established a special desk at the Economic and Financial Crimes Commission (EFCC) which has energized investigation and prosecution of parties responsible for failure of banks.

“The Corporation has also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic developments, since its last review. It is our belief that the new coverage level once approved will go a long way in reinforcing depositors’ confidence on the NDIC’s deposit guarantee scheme.”