NDIC sets aside N258.767 billion to reimburse depositors of closure of licensed banks

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To support banks, others with N440bn in 2019

The Nigeria Deposit Insurance Corporation (NDIC) said it is ready to provide N440 billion as financial assistance to eligible banks in the 2019 fiscal year.

NDIC The Corporation also said it has set aside N258.767 billion in the 2019 fiscal year for the reimbursement of depositors in the unlikely event of closure of licensed banks.

Meanwhile, Chairman of House of Representatives Committee on Insurance and Actuarial Matters Hon.Olufemi Fakeye, has commended NDIC for carving a niche for itself as the leading Deposit Insurer in Africa.

Managing/Chief Executive, NDIC, Umaru Ibrahim, made the disclosure during the appearance of the Corporation’s management before the House of Representatives Committee on Insurance and Actuarial Matters to defend the Corporation’s 2019 budget estimates.

A statement by Head, Communications and Public Affairs Department, NDIC, Mohammed Kudu Ibrahim, said: “The House Committee Chairman recalled the role played by NDIC in the resolution of the defunct Skye Bank and the establishment of Polaris Bank Ltd as a bridge bank and charged NDIC to be more pro-active in detecting and addressing distress in banks as a way of sustaining public confidence in the system.

“Earlier, while presenting details of the budget before the House Committee, the NDIC boss disclosed that the Corporation has set aside the sum of N258.767 billion in the 2019 fiscal year for the reimbursement of depositors in the unlikely event of closure of licensed banks.

“Giving a breakdown of the funds, the NDIC CEO said N109.686 billion was provided for depositors of Deposit Money Banks (DMBs), while N149.081 billion has been set aside for depositors of Primary Mortgage Banks (PMBs) and Micro Finance Banks (MFBs).”

He explained that the estimates were consistent with the Corporation’s mandate of providing financial guarantee to depositors of failed banks towards promoting public confidence in the banking sector.

This, he added, is critical to the sustenance of the stability of the entire financial system.

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