The House of Representatives’ Committee on Insurance & Actuarial Matters has commended the Nigeria Deposit Insurance Corporation (NDIC) for its transparency and professionalism in the discharge of its duties.
The Chairman of the committee, Hon Ahmadu Usman Jaha, stated this while declaring open the 2025 stakeholders workshop of the committee organised by the NDIC in Lagos.
The theme of the workshop is: Navigating Financial Disruptions: Strengthening the NDIC’s Mandate For Economic Stability.
He said all steps taken by the NDIC when the license of Heritage was withdrawn have demos treated that the corporation is all out to sanitize the financial system of the Nigerian economy as a safe and reliable one.
His words, “To the best of our knowledge, on the part of the legislature, there is absolute transparency and professional application of techniques as far as the process is concerned by the NDIC because we were following and monitoring right from the day that announcement was made that the license of Heritage Bank has been withdrawn.
“To the surprise of many Nigerians, the NDIC took a bold move immediately by setting the process of addressing the fate of insured depositors. I think, in less than two days or three days when the bank was closed, they began to pay.
“This is to tell you how proactive the NDIC is, and to the best of my knowledge they have done well and Nigerians are proud of them.
“This kind of transparency is a thing of pride to us. This will also restore depositors’ confidence in the financial system”.
While welcoming members of the committee at the workshop, the Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr Bello Hassan, said the corporation is well aware of its responsibility to depositors.
The corporation, he said, ensured that the payment of the insured sum was prompt in line with best practice and that it is set to begin payment of first tranche of liquidation dividend payment after disposal of some of the bank’s assets
He said, “We have made significant progress in the disposal of the physical assets of the defunct bank, and we are pleased to announce that, the first tranche of liquidation dividend of 9.2 kobo per naira, will be paid to uninsured depositors of the defunct bank before the end of April 2025.
“We have also re-strategized on aggressive debt recovery, to ensure that we recover outstanding debts owed to the defunct bank, to pay the balance of uninsured depositors and other claimants, in the order of priority, as provided in Section 72 of the NDIC Act of 2023”.
He added that the retreat, with the theme “Navigating Financial Disruptions: Strengthening the NDIC’s Mandate for Economic Stability”, is coming at the right time in the history of Nigeria.
This theme, according to him, is apt and the retreat could not have come at a better time than now, considering the Federal Government’s determination towards achieving sustainable growth by strengthening the financial system and ensuring its stability, amid emerging and ongoing disruptions in the financial system.
He said, “Financial disruptions are events or situations that have the capacity to change the way things are done and are always associated with opportunities and challenges.
“Key contributors to these disruptions include digital innovations, poor governance, market volatility, economic shocks, inadequate risk management, cybersecurity risk, and the proliferation of Ponzi schemes, amongst others.
“If the challenges are not addressed in a timely and effective manner, they can erode public and investors’ confidence with the attendant consequences on financial system stability. To deal with the challenges associated with financial disruption effectively, banks need a multifaceted strategy that blends resilience, innovation, and culture of compliance with regulations”.
He added that the corporation recognised the strategic importance of the National Assembly, as one of the critical stakeholders and duly appreciate the positive contributions and support the Corporation has been enjoying form this Committee in particular.
“The unflinching support we enjoyed from the Committee and the harmonious working relationship between ourselves, has strengthened our ability to discharge our mandates.
“This retreat, once again, provides a valuable platform to assess current opportunities and challenges, share insights and develop strategies that would further enhance the achievements of the NDIC’s mandates”.
The NDIC also recognised that consumer protection and the preservation of public confidence in the financial system are not only critical to its mandates, but also the foundation to the continued resilience and credibility of the Nigerian banking sector.
“The growing incidence of Ponzi schemes and so-called “wonder banks” as witnessed by the recent crash of the CBEX pyramid scheme, which resulted in an estimated loss of ₦1.3 trillion have implications for public confidence in the financial system.
“The Corporation remained committed to protecting the public from such fraudulent schemes by implementing comprehensive public awareness campaigns that educate people about the risk of engaging with unlicensed financial institutions”, he added.
These campaigns have been executed through radio and television announcements, town hall meetings, academic excursions to the Corporation, and the commemoration of key initiatives such as Financial Literacy Day and World Savings Day
The NDIC boss also reiterated that the corporation will ensure that the list of licensed insured deposit taking institutions is regularly updated and published on the corporation’s website, enabling members of the public to easily verify the status of licensed deposit taking institutions covered by the NDIC.