InfoStride News reported that the Nigeria Deposit Insurance Corporation (NDIC) has established a dedicated desk at the Economic and Financial Crimes Commission (EFCC) to intensify the investigation and prosecution of individuals responsible for bank failures. The Managing Director/Chief Executive Officer of NDIC, Mr. Bello Hassan, disclosed this during the 2023 NDIC workshop for business editors and members of the Finance Correspondents Association of Nigeria (FICAN) in Owerri.
The purpose of this special desk at the EFCC, according to Hassan, is to facilitate enhanced collaboration between the two organizations. This collaboration aims to streamline efforts, improve data exchange, and optimize resource utilization, all geared towards more effectively addressing cases of bank collapses and holding accountable those responsible.
Moreover, Hassan emphasized NDIC’s ongoing efforts to expedite the legal processes associated with failed banks. The corporation has bolstered its collaboration with the judiciary to ensure swifter and more informed judgments in such cases. Additionally, NDIC has implemented a policy and framework for Alternative Dispute Resolution, enabling out-of-court settlements and resolving longstanding litigations related to failed banks.
Hassan mentioned, “We have established a special desk at the Economic and Financial Crimes Commission (EFCC), which is energized investigation and prosecution of parties responsible for the failure of banks.”
Furthermore, NDIC has introduced the Single Customer View (SCV) framework to accelerate the disbursement of insured funds to depositors in the event of bank closures. This initiative streamlines the identification, validation, and compensation processes, ensuring prompt access to insured funds for eligible depositors.
The NDIC is also committed to enhancing transparency and accountability in its operations. Hassan highlighted the organization’s continuous efforts to improve systems, processes, and procedures.
In addition, NDIC is in the advanced stages of reviewing the maximum deposit insurance coverage. This review, driven by recent macroeconomic developments, aims to better reflect the current financial landscape. While Hassan did not disclose the new coverage level, he expressed confidence that its approval would significantly reinforce depositors’ trust in NDIC’s deposit guarantee scheme.
As it stands, NDIC guarantees the payment of deposits up to N500,000 for depositors in Deposit Money Banks (DMBs) and Primary Mortgage Banks (PMBs). For depositors in Microfinance Banks (MFBs), the maximum insured sum is N200,000 in the event of a participating financial institution’s failure.
Hassan remarked, “The corporation has also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic developments, since its last review. We believe that the new coverage level once approved will go a long way in reinforcing depositors’ confidence in the NDIC’s deposit guarantee scheme.”
In conclusion, Hassan called for collaborative efforts with all relevant stakeholders in the Nigerian financial system. This collaboration aims to strengthen banks through prudential thresholds and other regulatory instruments, ensuring the overall stability and resilience of the financial sector.
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