1.0 I am highly pleased to welcome distinguished participants to the 19th edition of the NDIC Workshop for Business Editors and members of the Finance Correspondents Association of Nigeria (FICAN). It is gratifying to note that this workshop has evolved into the flagship capacity building and engagement platform by the Corporation, not only with the media, but with the members of the civil society groups and the Association of Corporate Affairs Managers of Banks (ACAMB).
2.0 This event has over the years, promoted better understanding of the Corporation’s roles in achieving financial system stability. It has also strengthened and broadened the media’s ability to interrogate and interpret topical issues in the financial services sector in general. In addition, the Corporation has been able to promote better understanding of its mandates and activities among members of the civil society organisations, thereby fostering collaboration in the area of enlightenment of the public on the benefits of the Deposit Insurance System (DIS). With the coming onboard of the Corporate Affairs Managers of Banks (ACAMB), I am optimistic, that the same high level of partnership, will be fostered towards educating bank depositors about the importance of the DIS through your consistence in the seminar.
3.0 Distinguished participants, the fact that the global banking landscape has continued to be defined and challenged by technological disruptions, innovations and novelties cannot be overemphasized. This reality has not only put a demand on regulators and supervisors in the sector across the world to enhance surveillance, but it has also called for stronger collaborations, in order to deliver services that are laced with constantly improved values to the banking public and the society at large. It is in line with the foregoing, that the Corporation has carefully chosen the theme of this year’s workshop as: “Boosting Depositors’ Confidence Amidst Emerging Issues and Challenges in the Banking System”.
4.0 It is instructive to add that we have painstakingly selected highly seasoned facilitators from within the Corporation, the Central Bank of Nigeria (CBN) and the media to do justice to the various papers already scheduled for presentation at this workshop.
5.0 Distinguished ladies and gentlemen, it is pertinent for me, at this juncture, to intimate you with some bold steps being taken by the Corporation to invigorate its processes and procedures, towards a more effective discharge of its depositor protection mandate and some of our landmark achievements.
6.0 You would recall that in my address at the opening ceremony of last year’s seminar, I underscored the determination of the management of the Corporation, to work harmoniously with all stakeholders, towards enhancing the effective discharge of our mandate. I also outlined the vision and policy direction of the Corporation under my humble stewardship to include our determination to scale up the deposit insurance framework; the provision of timely support to insured institutions as and when required; to ensure faster and orderly resolutions of liquidated insured institutions; and to continue to assist the CBN in promoting the stability of the banking system. Over the time, we have embarked on series of strategic initiatives to achieve our desired vision.
Faster and orderly resolution of liquidated banks
7.0 In the area of scaling-up the deposit insurance framework and ensuring faster and orderly resolutions of liquidated insured institutions, in May this year, with the active participation of the relevant stakeholders, we had developed and deployed the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks in order to strengthen our processes and procedure for data collection. The platform would not only ensure availability of quality, timely and complete data to the NDIC, but would eliminate delays often experienced in reimbursing depositors following revocation of institutions’ licenses by the CBN.
8.0 The final phase of the implementation of the SCV for Deposit Money Banks (DMBs) will be achieved through the incorporation of the SCV template as part of the on-going Integrated Regulatory Solution (IRS) jointly being developed with the CBN.
9.0 In the area of consumer protection, the Corporation has strengthened its complaints resolution platforms, which include the Toll-Free Help Desk, social media handles and Complaints Desks in the Bank Examination, Special Insured Institutions and Claims Resolutions Departments, as well as our Zonal Offices, to receive and process complaints from depositors.
10.0 As at June 30, 2022, the NDIC provided deposit insurance coverage to a total of 981 insured financial institutions. The breakdown includes: thirty-three (33) DMBs made up of Twenty-Four (24) Commercial Banks, Six (6) Merchant Banks and Three (3) Non-Interest Banks (NIBs) plus Two (2) Non-Interest Windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); Three (3) Payment Service Banks (PSBs) and 29 Mobile Money Operators.
11.0 The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks inliquidation. The liquidation activities, as at June 30, 2022, covered a total of 467 insured financial institutions in-liquidation, comprising of 49 DMBs, 367 MFBs, and 51 PMBs.
12.0 As at June 2022, the NDIC had cumulatively paid ₦11.83 billion to over 443,949 insured depositors and over ₦101.37 billion to uninsured depositors of all categories of banks in-liquidation.
13.0 It is most profound for me to say that, out of the 49 DMBs in-liquidation, the Corporation in September, 2022 declared 100 per cent liquidation dividend in 20 of those institutions, meaning that the Corporation has realized enough funds from their assets to fully pay all depositors of the listed banks.
14.0 Distinguished participants, permit me to reiterate that the above landmark achievements and others, would not have been possible, without the active support of the strategic stakeholders seated in this hall, a partnership we cherish dearly.
15.0 Through better understanding of our programmes and policies, it is hoped that, you will not only be better informed in the coverage of our activities, but also be well-equipped to contribute to our advocacy and mobilization for a resilient financial system. I therefore call on you all, to continue to support the Corporation in its resolve to deliver on its core mandates. On our part, we promise to keep our doors open to your suggestions and observations.
16.0 Finally, Ladies and Gentlemen, I profoundly thank you all for honoring our invitation while wishing you fruitful deliberations and warm stay in the Garden city of Port Harcourt.
17.0 Thank you for your attention.
Managing Director/Chief Executive
Nigeria Deposit Insurance Corporation
Monday, 28th November 2022