Home Insurance Digest NDIC stresss need for small savers to patronise deposit taking financial institutions

NDIC stresss need for small savers to patronise deposit taking financial institutions

NDIC stresss need for small savers to patronise deposit taking financial institutions


Nigeria Deposit Insurance Corporation (NDIC) has stressed the need for traders, artisans, farmers and other small savers to ensure that their monies are deposited in banks or other licenced deposit taking financial institutions nearest to them to avoid losses that could result from fire incidents, burglaries and other forms of crimes.

This is even as the corporation assured that in the coming years, it will continue to work with the Central Bank of Nigeria (CBN) to ensure effective supervision of banks and the adherence to predential guildlines and code of corporate governance of banks to ensure their safety and the overall stability of the Nigerian financial system.

In his speech on the occasion of the NDIC’s special day at the on going 33rd edition of the Lagos International Trade Fair, Managing Director of the Corporation, Umaru Ibrahim maintained that a crucial public policy objective of NDIC is the protection of Depositors of insured financial institutions as well as promoting public confidence in the financial system.

Ibrahim who was represent by a senior official of NDIC, Mr Joshua Etukudo stated that one of the most significant achievement of the corporation is the provision of the deposit insurance cover to subscribers of Mobile Money Operators (MMOs) to the maximum limit of N500,000. 00, through the Pass-Through deposit insurance framework.

With the theme, ‘ Connecting Businesses, Creating Value’ Ibrahim maintained that the theme of this year’s fair compliments the federal government’s initiatives on developing businesses critical to growing the economy especially at the grassroots.

He said, ” As it stands, the number of licenced MMOs by CBN is twenty three, with eight being ‘Bank-Led’ and the remaining fifteen ‘Non-Bank Led. As at 30th June,2019, the number of subscribers to MMOs stood at 9,249,265.

“As at 30th June, 2019, the corporation received a total number of 35 petitions/complaints from banks customers on various issues such as Automated Teller Machine (ATM) frauds, unauthorized funds transfers, cheque related issues and much more. investigations and mediation were carried out where necessary and customers were appropriately reprieved.

“In the area of capacity building, the NDIC is championing the establishment of a Center fro DIS in Africa. The NDIC academy and learning center was recently accredited by the chartered Institute of Bankers Committee (CIBN)as a major training hub for financial institutions,” he said.

Speaking further, the NDIC boss noted that following the issuance of the framework for the licensing and regulation of Payment Service Banks (PSBs) by the CBN, the corporation has designed an appropriate Differential Premium Assessment System (DPAS) Matrix for premium computation/payment as well as set an insurable limit to the depositor in the event of failure.

He said the corporation is taking these measures so as to engender confidence in the system and to discourage bank customers from keeping cash at home, shops and other places outside the banks.

According to him, monies kept outside the banks are not insured by the corporation and susceptible to loss through robbery, theft or fire outbreak.

In his opening remarks, President, Lagos Chamber of Commerce (LCCI), Mr. Babatunde Paul Ruwase was of the view that since it’s inception, NDIC has continued to wax strong not only in the implementation of its mandate, but also in ensuring that the overriding public policy objectives establishing a strong deposit insurance system in the country were realized.

He said, the LCCI commends NDIC for its efforts in deepening public confidence and promoting stability in the banking industry.

For a better society

Total Views: 203 ,


Leave a Reply