The Honourable Minister of Finance Hajiya Zainab Ahmed, has directed the Central Bank of Nigeria (CBN), and the Nigeria Deposit Insurance Corporation (NDIC), to fully investigate and prosecute all the Directors and Executive Management who contributed to the collapse of the defunct Skye Bank plc as well as other Deposit Money Banks (DMBs) in liquidation. The Minister gave the directive during her familiarization visit to the Executive Management of the NDIC led by the Managing Director and Chief Executive Umaru Ibrahim. Also in the team that welcomed the Minister was the Executive Director (Corporate Services) of the Corporation Hon. Omolola Abiola-Edewor.

The Honourable Minister of Finance, Hajiya Zainab Ahmed receiving copies of publications by the Nigeria Deposit Insurance Corporation (NDIC) from the MD/CE, Umaru Ibrahim (Right) during her familiarisation visit to the agency in Abuja.

The Minister expressed her serious concern about the spate of non-performing loans in the banking industry, adding that while the bail-out of distressed financial institutions was necessary in the interest of the stability of the banking system, emphasis should also be placed on the investigation and prosecution of delinquent Board Directors and Executive management of financial intuitions who abused the trust placed on them by depositors.

The Minister urged the CBN and the NDIC to use the recent failure of the defunct Skye Bank Plc as an opportunity to deal decisively with any of its Directors and Management found culpable in the course of the investigations, so as to serve as a deterrent to other operators in the financial system as the federal government is no longer prepared to treat such serious infractions with levity.

Earlier in his welcome address, the NDIC MD/CE assured the Hon. Minister that the Corporation will do all it can to assist in the recovery of all the debts owed the defunct Skye Bank and other Banks in liquidation. He also expressed the Corporation’s determination to ensure that the Directors who perpetrated in insider abuse and other illegalities in running the affairs of the bank are investigated and prosecuted by appropriate authorities. The primary concern of the NDIC, he assured the Minister, is to ensure the safety of depositors’ funds and minimise the disruption of banking services.

The MD/CE informed the Minister that since 1991, the aggregate payment to depositors, creditors and shareholders of 46 closed banks amounted to 11.75 billion Naira, out of which the total payments to insured depositors of Deposit Money Banks (DMBs) amounted to N8.252 billion.

The Honourable Minister of Finance, Hajiya Zainab Ahmed (3rd Left) poses for a group photograph with the MD/CE Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim (2nd Right) during her familiarisation visit to the agency in Abuja. They are flanked by the NDIC Executive Director Corporate Services, Hon. Mrs. Omolola Abiola-Edewor (1st Left), Director, Home Finance, Federal Ministry of Finance, Mrs Olubunmi Siyanbola (2nd Left) and Permanent Secretary Federal Ministry of Finance, Mahmoud Isa-Dutse (1st Right).

The MD/CE also stated that a total of N2.89 billion was paid out to insured depositors of Microfinance Banks (MFBs) covering 81,657 individual accounts, while N69.60 million was also paid to insured depositors of Primary Mortgage Banks (PMBs). A total number of 46 DMBs he further stated, are currently in liquidation.

The MD/CE concluded his remarks by assuring the Minister that the Corporation used the most appropriate failure resolution option in the case of the defunct Skye Bank as it ensured that over 6,000 jobs were saved while its depositors continued to operate their accounts with the new Polaris Bank Limited which assumed its entire assets and liabilities.

Responding, the Minister commended the NDIC for the thoroughness of its bank examination reports which have become acknowledged in the banking system. She also expressed her appreciation to the Corporation for the prompt payment of its contribution under the Fiscal Responsibility Act, adding that the Federal Government regarded the NDIC as a critical player towards the actualization of its Economic Recovery Growth Plan (ERGP). Earlier, the MD/CE had informed the Minister that the total amount paid by the Corporation under the Fiscal Responsibility Act amounted to N175 billion.