It is my singular honour and pleasure to be present at today’s Special Day of the Nigeria Deposit Insurance Corporation (NDIC) at the ongoing 34th Enugu International Trade Fair, 2023. The fact that today, and this moment, is a Day set aside to showcase the mandate and activities of the NDIC, particularly our contributions to the stability of the country’s financial system, to the Executives and Members of the Enugu Chamber of Commerce, Industry Mines and Agriculture, the array of distinguished guests, as well as exhibitors and visitors to this year’s trade fair, underscores the significance of this event to us.
On this note, I like to extend a warm welcome to all of our esteemed guests, especially our royal fathers, government officials, academics, members of the civil society organizations, representatives of business concerns, and co-exhibitors, who have considered it worthy to join us for this momentous occasion.
I would like to take this opportunity to congratulate the executives and members of the Enugu Chamber of Commerce, Industry Mines and Agriculture on yet another achievement in your tireless efforts to collaborate with the government in encouraging trade and investment, not only in the South East geo-political zone but the country in general. The fair’s theme “Harnessing Nigerian Human Capital Resources for Global Economic Advancement” speaks volumes about how your programs and vision match with the government’s priorities in this regard.
Also for us in NDIC, it is instructive to note the strong relationship between our mandate and the theme of this year’s fair. By discharging our public policy objectives of protecting depositors in the event of bank failures and further offering a measure of safety for the banking system, thereby creating an enabling environment for the financial system to appropriately support the economic advancement of our great nation.
Distinguished guests, ladies and gentlemen, suffice it to say, the NDIC was established in 1989 as a critical component of the nation’s financial system safety-net. The four broad mandates of the Corporation are Deposit Guaranty, Banking Supervision, Failure Resolution and Bank Liquidation.
The Corporation adopted participation in the Enugu International Trade Fair over the years, as platform for continuous sensitization of depositors, and the general public on the existence of the Deposit Insurance Scheme (DIS), its advantages, and its limitations. This is significant to us as it will enhance public confidence in the financial system. We want the general public to know, and reflect always, that their deposits are safe and that in the unusual event of a bank failure, a government agency, the NDIC, is here to protect the depositors, especially the small savers.
The Corporation protects depositors through the discharge of its mandate in four critical ways namely: by guaranteeing deposits in banks; by supervising the banks in conjunction with the Central Bank of Nigeria (CBN) to ensure that they are run in safe and efficient manner in line with extant laws and regulations; by resolving issues of distress in banks to reduce instances of failure; and by ensuring orderly and efficient liquidation of failed banks to prevent disruptions to the payment system.
It is worthy to note that the Corporation has been successfully and efficiently discharging its mandates from inception till date, living up to its public policy objectives and contributing to financial system stability. For instance, in the aspect of Deposit Guaranty, we are happy to state that NDIC has been highly responsive in providing coverage to all eligible deposits and accounts as they evolve in our banking system. Apart from depositors of Deposit Money Banks (DMBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs), the Corporation has also been responsive by extending deposit insurance coverage to depositors of Non-Interest Banks (NIBs), subscribers of Mobile Money Operators (MMOs) and the recently introduced Payment Service Banks (PSBs).
Depositors of DMBs, PMBs, PSBs and subscribers of MMOs are insured up to maximum limit of N500,000.00 per depositor per bank while those of MFBs are guaranteed up to a maximum limit of N200,000.00 per depositor per bank.
Arising from the foregoing, the NDIC likes to reiterate to members of the public, particularly the teaming populace in the Medium, Small and Micro Enterprise (MSME) sector, and others in the informal segment of our economy that the safest, smartest and most prudent place to keep your money is in the formal banking system because the NDIC protects your bank deposits. Such deposits also enjoy the benefit of effective regulation and supervision of relevant authorities, and take people’s hard earned money beyond the ambit of illegal fund managers and loan sharks that currently awash the investment landscape and fleecing unsuspecting members of public.
However, as the unscrupulous elements get more and more creative in their ignoble acts, and as the NDIC and other regulatory bodies device more ingenious approaches to tackling their menace. It is pertinent for the Corporation to continue to sensitize the public on their expected roles towards protecting their bank deposits. Depositors are to ensure their phones have strong password and do not share their bank mobile app password with third parties; ensure no one is watching when they enter their PIN to perform transactions; ensure their token is secure and other parties do not have access to it; and ensure their debit card number and CVV are not exposed to people. Equally important is the need to avoid investment offers with quick and arbitrarily high returns.
On a final note, I like to express our profound gratitude to all our special guests, distinguished ladies and gentlemen, and gentlemen of the press for finding time to be part of today’s Special Day. We wish you journey mercies back to your various destinations.
Thank you for your attention.
MANAGING DIRECTOR/CHIEF EXECUTIVE
NIGERIA DEPOSIT INSURANCE CORPORATION
THURSDAY 30TH MARCH, 2023