NDIC Assures Depositors Of Prompt Compensation In Case of Banks Failure

(AFRICAN EXAMINER) –  The Nigeria Deposit Insurance Corporation NDIC, has assured Nigeria’s  Depositors that the organization would continue to remain consistent in playing its role in maintaining financial stability to ensure that they do not suffer loss but instead get prompt compensation should banks fail.

Its Director General, Bello Hassan, gave the  assurance Wednesday during the NDIC special day at the ongoing 36th Enugu International trade fair taking place at the fair’s permanent site in Enugu.

Bello, who was represented by Mrs Pamela Roberts, Deputy Director at the Enugu zonal office cited the example of Heritage Bank that was recently liquidated, pointing out that within four days they started compensating the depositors with the bank.

The NDIC boss, called on depositors to be rest assured should their banks fail, saying once they can present necessary documentation supporting their account ownership, they would be compensated.

According to him,”NDIC has successfully declared a full 100% liquidation of dividends to depositors of 20 previously failed banks. 

 “This reflects our unwavering commitment to depositors protection and our proven capability to manage Bank failures effectively.

“I therefore urge depositors of closed banks to come forward and provide the necessary documentation supporting ownership of the account, including BVN, and an alternate bank account number of the insured sum,” he urged.

In his speech at the event, President of Enugu Chamber of Commerce, Industry, Mines and Agriculture, ECCIMA, sir Odeiga Jideonwo, urged the Central Bank of Nigeria, CBN, to assist the Nigeria  NDIC to ensure that banks in Nigeria do not close shops and that depositors don’t go through harrowing experience to recoup their deposit in the event of failed banks.

Jideonwo, represented by Ugo Ozigbo, an ECCIMA member, stated that by assisting NDIC, CBN in their regulatory role will ensure that the chances of Bank failures in Nigeria is reduced to the barest minimum.

“Today is NDIC Day, but permit me to use this opportunity to plead that the CBN through its regulatory framework should make the work of NDIC easier by ensuring that the chances of Bank failures is reduced to the barest minimum and guard against depositors going through this harrowing experience”.

Citing the recent closure of Heritage Bank for instance, Jideonwo pointed out that more needed to be done to ensure that banks don’t go under.

He therefore called on CBN and NDIC as key players in the financial sector, to ensure stability and tranquility in the banking sector through their regulatory frameworks.

The special day was attended by senior staff of the organization

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