How we saved N1.75trn depositors fund from failed banks – NDIC
The Nigeria Deposit Insurance Corporation (NDIC) says it has saved N1.7trn depositors fund from different failed banks across the country.
Managing Director of NDIC, Umaru Ibrahim stated this while giving a scorecard of the agency ahead of its 30 years anniversary celebration in Abuja.
Ibrahim said asides saving N1.7trn depositors money, the Corporation also saved 12,677 jobs which could have been lost in the process.
The managing director who was represented by the director, Communications and Public Affairs Department (CPAD), Dr Sunday Oluyemi said the bank recovered the debts as part of its mandate to promote depositors confidence in the banking sector.
He said as part of its regulatory strides for failed resolution of banks, the NDIC in collaboration with the Central Bank of Nigeria (CBN) embarked on different policies to save depositors money stocked in failed banks.
“In collaboration with the CBN, the NDIC adopted different options to failures in bank systems which include Open Bank Assistance (OBA), Purchase and Assumption (P&A), Bridge Bank and reimbursement (payout) of insured depositors.
“In discharging its statutory role under section 39 (1) of the NDIC Act 16 of 2006, the Corporation adopted the Bridge Bank mechanism to resolve the failure of Afribank, Spring Bank and BankPHB in 2011, as well as the recently failed Sky Bank in 2018.
“The initiated safeguard 12,667 jobs, protected deposit liabilities of over 1.75trn which ensured the depositors had uninterrupted access to their funds and prevented systematic repercussions of the failure of the banks and the entire financial system,” he added.
The Nigeria Deposit Insurance Corporation (NDIC) further stated that it recovered a total of N29.112 billion debts owed banks by loan defaulters.
The Corporations also said it has recovered N129.10m and N300m from debtors of failed Microfinance and Private Mortgage banks respectively.
“NDIC’s liquidation activities involved the recovery of debt and realization of assets of closed banks. To date, a cumulative of over N29.112 billion was recovered from debtors of DMBs in Liquidation, also N129.10million and N300 million was realized from the debtors of failed MFBs and PMBs.
“Currently, N21.50bn was collected from the disposal of physical assets of closed DMBs while N404.74million and N78.17milion was realized from MFBs and PMBs,”
“Debt collection and assets sale culminated in the payments of N116.258 as liquidation dividends to depositors, creditors and shareholders to closed DMBs, MFBs and PMBs.
Customs are after our businesses, auto dealers cry out
“Also the NDIÇ has realized to pay in full, deposits of customers of 17 Deposit Money Banks, as all depositors of the defunct 17 banks have been paid their monies in full both insured and uninsured,” he explained.
On the status of Savannah Bank, the Corporation said the operating licence of the bank was revoked in 2002 which let to its liquidation.
It noted that the liquidation ended in a legal battle which led to the restoration of the bank’s licence.
The NDIC, however, said that Savannah bank has an operating licence but cannot function because of its inability to have the N25bn capital base for Deposit Money Banks (DMBs).
The Corporation added that it is penetrating the academic space by promoting financial literacy and consumer protection.
