NDIC Urged to Remain Vigilant
By Patience Ikpeme
Officials from the Nigeria Deposit Insurance Corporation (NDIC) have been advised to stay alert as Nigeria’s banking sector undergoes substantial reforms.
This caution was issued by His Royal Highness Luka Ayedo Nizasaan (III), the Etsu Kwali, during the NDIC’s Special Day at the 19th Abuja International Trade Fair.
Nizasaan highlighted the risks involved in enforcing banking regulations, especially regarding powerful shareholders, and emphasized the importance of their role in maintaining economic stability.
“The elites will never like you because when you go to banks, they own these shares. When you go to banks and ask them to adhere to standards and regulations, they don’t always like to smile. Some of you, your lives are at risk.” He stated.
He also encouraged the officials to stay committed, pointing out that although the general public may not fully acknowledge their hard work, there are individuals who understand the vital importance of their contributions. “You contribute significantly to the stability of our economy. My advice is to keep up this dedication. We have a nation to build, and the responsibility you’ve been entrusted with is a fragile one,” Nizasaan remarked.
NDIC’s Managing Director, Mr. Bello Hassan, also reported on recent improvements in deposit protection and ongoing efforts to ensure compensation for uninsured depositors.
Bello Hassan spoke more on the expansion of insurance coverage noting that “This increase ensures that 98.98% of total depositors in Deposit Money Banks (DMBs), 99.27 percent in Microfinance Banks (MFBs), 99.34 percent in Primary Mortgage Banks (PMBs), and 99.99 percent in Payment Service Banks (PSBs) are covered, reinforcing NDIC’s commitment to fulfilling its mandate.”
The enhanced insurance coverage aims to build public trust in Nigeria’s financial system, ensuring depositors feel their funds are safe amid banking difficulties. Hassan emphasized that while the NDIC prioritizes insured deposits, it is also dedicated to compensating depositors with amounts over N5 million.
This initiative seeks to protect a larger number of depositors and stabilize the financial landscape in Nigeria.
