I am delighted to be here today on the occasion of the Nigeria Deposit Insurance Corporation, NDIC Special Day at the 2012 Lagos International Trade Fair. I first of all would like to congratulate the President and the entire members of Lagos Chamber of Commerce for this year’s trade fair which has turned out to be a great success.
Most importantly, the theme of the fair: Promoting Trade for Sustainable Economic Transformation bears eloquent testimony to the posture of the Chamber as a key player in the quest for the realization of the Vision 20:2020 and the transformation agenda of the Federal Government. It is against this background that I urge you to sustain the tempo of your programmes and activities, and to further raise the bar by continuing to break new grounds in your partnership with other ministries, departments, agencies (MDAs) and other stakeholders toward the transformation of the nation’s economy.
The safety, soundness and stability of the financial sector cannot be downplayed in the economy of any nation. The Nigeria Deposit Insurance Corporation was established by the Federal Government in 1989 under the NDIC Decree 22 of 1988 which had been replaced by NDIC Act No. 16 of 2006 to insure deposit liabilities of licensed financial institutions in Nigeria. The key mandate of the Corporation is to provide financial guarantee to depositors of the insured financial institutions in the event of failure with a view to enhancing public confidence in the nation’s banking system. Therefore, the NDIC has a crucial role to play towards the safety, soundness and stability of the financial system.
Distinguished ladies and gentlemen, it is instructive for me to say that the NDIC has been resolutely committed to its mandate since it commenced operations in the last two decades. The Corporation has also contributed immensely to the various banking reforms that had been witnessed in the Nigerian banking sector and the dynamics of the global financial market.
At this juncture, let me use this opportunity to highlight some of the landmark achievements of the Corporation despite the daunting challenges in the nation’s financial market. It is on record that the NDIC had paid cumulative insured deposits of N6.682 billion to depositors of 48 deposit money banks (DMBs) in-liquidation as at 31st August, 2012 as against N6.636 billion paid to 527, 942 depositors as at 31st December, 2011. In addition, a cumulative liquidation dividend of N77.384 billion had been paid to depositors whose claims were in excess of the insured amount in the 48 closed DMBs as at 31st August, 2012 as against N73.553 billion that was paid during the same period last year.
Similarly, a total sum of N2.45 billion had been paid to depositors of the 103 closed Microfinance Banks (MFBs) as at 31st August, 2012 as against the sum of N2.25 billion that was paid to the insured depositors of the closed (MFBs) as at the end of December last year. That was not all. A cumulative liquidation dividend payment to shareholders of Alpha Merchant Bank, Nigeria Merchant Bank and Pan African Bank (in-liquidation) stood at N373.04 million, N620.0 million and N293.0 million respectively during the period. This was in addition to the settlement of all the depositors and creditors of the three banks (In Liquidation).
Before I conclude this address, let me draw your attention to the fact that as knowledge based scheme, deposit insurance has been facing low-level public awareness in most jurisdictions worldwide. In that regard the NDIC has mapped out a number of public awareness initiatives, including the participation in this trade fair that are aimed at sensitizing the banking public and other stakeholders on its mandate and activities. Some of the initiatives include the following:
• Periodic Press briefings by the Corporation’s MD/CEO;
• Organization of Sensitization Seminar for Judges, relevant Committees of the National Assembly and other stakeholders;
• Annual Workshop for Business Editors and Finance Correspondents under the umbrella of the Finance Correspondents Association of Nigeria (FICAN);
• Annual Editors Forum ;
• Transmission of radio and television depositor protection awareness jingles in three major Nigerian Languages, namely Igbo, Hausa and Yoruba;
• Participation in Lagos, Kaduna and Enugu International trade fairs;
• Hosting of students of higher institutions on educational visits;
• the development of a new robust and interactive Website – www.ndic.ng.org;
• Establishment of a toll-free 24-hour Help-Desk: 080063424357.
In conclusion, on behalf of the Board, Management and Staff of the NDIC, I wish to express our profound appreciation to the Lagos Chamber of Commerce for their support and co-operation since 2008 when we started participating in the Lagos International trade fair. We also wish to extend our sincere gratitude to all our special guests who found time to be here despite their busy schedules. This address will however be incomplete without expressing our sincere thanks to the press who have continued to be our partners in progress. There is no doubt that without the continued support and cooperation by the press, the Corporation’s awareness initiatives, including our participation in this trade fair will be given black out. On our own part, we shall continue to reciprocate the gesture by continuing to organise capacity building programmes that will strengthen their reporting abilities.
I thank you all for listening.
UMARU IBRAHIM, mni, FIB
MD/CEO, NIGERIA DEPOSIT INSURANCE CORPORATION
THURSDAY, NOVEMBER 8, 2