I am highly delighted to be present at this important occasion of the Nigeria Deposit Insurance Corporation (NDIC) Special Day at the 36th Kaduna International Trade Fair holding in the historic city of Kaduna. I wish to warmly welcome our distinguished guests, particularly our royal fathers, Kaduna state government officials, representatives of Deposit Money Banks, MicroFinance Banks and Primary Mortgage Banks, members of the academia, distinguished stakeholders and gentlemen of the press.

I wish to congratulate the President and other executive members of the Kaduna Chamber of Commerce for yet another milestone recorded in organizing this 36th edition of the Kaduna International Trade Fair. This is further underscored by the theme of the fair which is tagged: “Promoting Domestic Production for National Sustainable Economic Development”.

The NDIC has maintained a record of consistent participation in the Kaduna International Trade Fair since its debut in 2008 as part of the Corporation’s public awareness initiatives. The fair offers a unique platform to showcase our efforts toward protecting depositors’ interest and engendering public confidence in the banking system as well as our contributions to the safety, soundness and stability of the financial system.

Distinguished ladies and gentlemen, it is pertinent for me to refresh your minds on the Federal Government’s establishment of the NDIC through Decree No. 22 of 1988 (now repealed and replaced by NDIC Act 16 of 2006) to operate the deposit insurance scheme (DIS) in Nigeria. The scheme is designed to protect depositors’ funds as part of financial safety-net for the banking industry. The core mandate of the Corporation includes deposit guarantee, banking supervision, failure resolution and bank liquidation. In the event of any bank failure, each depositor is entitled to a maximum claim of N500,000 per depositor per bank for depositors of Deposit Money Banks (DMBs) and non-interest/Islamic banks and N200,000 per depositor per bank for depositors of MicroFinance Banks (MFBs) and Primary Mortgage Banks (PMBs). However, depositors with claims above the insured sums are entitled to liquidation dividends from proceeds on the sale of physical assets and recovery of debts owed to their closed banks. It is instructive for me to say that the current maximum insured limits of N500,000 and N200,000 respectively, cover over 90 per cent of bank depositors. The Corporation’s extant law also empowers its Board of Directors to review upwards the coverage level when the situation demands same to reflect the economic realities in the country.

Although the NDIC has been discharging its mandate creditably since its inception 26 years ago, current developments in both the national and international as well as financial markets had necessitated the need to improve its operational efficiency as a deposit insurer which underscores the need for further review of its Act (NDIC Act No 16 of 2006) as amended. It is heart warming to note that the NDIC Amendment Bill had passed the Second Reading in both the Senate and House of Representatives. The amendments to the NDIC Act 2006 would no doubt empower the Corporation to more effectively discharge its mandate and also continue to operate in line with global best practices.

For instance, the Corporation is seeking more powers to facilitate prompt settlement of depositors’ funds irrespective of pending litigations filed by the erstwhile bank owners who in most cases were responsible for the collapse and failure of the affected banks. Other areas contained in the proposed amendments to the NDIC Act 2006 include building of the Corporation’s general reserve fund in order to create a robust Deposit Insurance Fund (DIF), termination of insured status of erring banking institutions and enhancement of distress resolution mechanisms such as Bridge Bank, Purchase and Assumptions (P&A) as well as other forms of financial support for eligible problem banks.

Distinguished ladies and gentlemen, I wish to seize this opportunity to once again advise members of the public against patronising illegal fund managers, also known as “wonder banks” who offer extra-ordinary interest rates on deposits or investments only to disappear after collecting the deposits or investments. These illegal operators are not licensed by the Central Bank of Nigeria (CBN) as deposit-taking financial institutions and as such are not under the NDIC insurance cover. This advice becomes necessary in view of the continued existence of these illegal operators in different forms and styles in various parts of the country and people often approach the Corporation to seek redress after falling victims. For the avoidance of doubt, the Corporation wishes to make it categorically clear that only depositors of institutions that are licensed to collect deposits by the CBN, i.e. Deposit Money Banks (DMBs), MicroFinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Non-Interest/Islamic Banks are under the NDIC insurance cover. However, I am very pleased to remind you that the Corporation’s 24 hour toll free “Help Desk” Line: 080063424357 is still very much active and running. Members of the public are therefore encouraged to make enquiries or lodge their complaints if they are being short changed by their banks. I am also very pleased to inform you that the enquiries and complaints are free of charge.

It is worthy to note that due to the vital role of social media in informing the public, the Corporation has redesigned its website and integrated it fully with the major social platforms: Facebook, Twitter, Instagram, YouTube and LinkedIn in order to make it more robust and user friendly. The new website was formally launched in February this year to ensure that visitors have easy access to information about the Corporation’s mandate and activities as well as provide various platforms for communicating and seeking information. In line with best practices, the NDIC’s website domain has been changed from to in order to reflect the Corporation’s status as a Federal Government agency. The NDIC redesigned website and social media platforms are as follows:

The NDIC website:
Twitter: or @NDICNigeria
Instagram: or @NDICNigeria
YouTube: or

Finally, I would like to express my sincere appreciation to our Royal Fathers, the Executive Council of the Kaduna Chamber of Commerce, senior government officials, captains of industry or their representatives, other distinguished guests and gentlemen of the press who have found time to honour our invitation. We pray for Almighty God’s blessings as you embark on your return journey to your various destinations.

I thank you for your attention.

Umaru Ibrahim, mni, FCIB
Managing Director/CEO
Nigeria Deposit Insurance Corporation.
30th April, 2015