The Nigerian Deposit Insurance Corporation, NDIC says the takeover of Skye bank by its new owners, Polaris saved the job of 6,000 workers and depositors’ money totaling N949 billion. This he explained was done by the timely intervention of the Corporation and the Central Bank of Nigeria, CBN, through the withdrawal of the bank’s operating license. He assured that everyone involved in the bank’s distress would not escape prosecution.

The Corporation’s Managing Director, Umar Ibrahim disclosed this on its special day at the on-going Lagos International Trade Fair.

Ibrahim who was represented by the Head of Corporate Communications, Mohammed  Ibrahim, assured bank customers and other stakeholders that it would not relent in safeguarding their deposits and interests in the nation’s banks by ensuring that appropriate steps are taken to take care of their expectations whenever a bank has liquidity or administrative challenges.

He noted that , “as provided for in the NDIC Act 2006, When financial institutions fails, depositors of Deposit Money Banks (DMBs), Non-Interest Banks (NIBs) and Primary Mortgage Banks (PMBs) are reimbursed up to a maximum unit of N500,000, while the maximum insured coverage for depositors of MFBs is N200,000”.

“However, it is important to stress that depositors who have funds in excess of the insured limits are paid dividends from the liquidation of failed banks depending on the quality of their assets and outcome of debt recoveries by the NDIC”.

“As it stands, the number of licensed MMOs by CBN is currently 23, with eight being Bank-Led and the remaining 15 Non-Bank Led. As at 2017 year end, the number of accounts in the MMOs stood at over 153 million. The NDIC provides deposit insurance coverage to subscribers of MMOS to the maximum limit of N500,000 through the Pass-Through Deposit Insurance Framework. This is to further promote financial inclusion drive across the broad spectrum of the Nigerian economy.”

In his speech, the President Lagos Chamber of Commerce and Industry, LCCI, Babatunde Ruwase lauded NDIC for its demonstrable commitment to its mandate, adding that the Corporation has endeavoured to ensure that the overriding public objectives for establishing an explicit deposit insurance system in the country was realized.

According to him, at a time like this, building confidence in the country’s financial system is crucial in the face of vulnerability of the economy to foreign exchange crises, liquidity challenges and macroeconomic distortion.

Ruwase added, “ we appreciate the effort made by NDIC in the distress situation of Skye bank. We also acknowledge upward review of the maximum deposit insurance coverage which currently stands at N500,000per deposit for licensed bank. This is in tandem with current economic conditions and there should be a continuous review of the exercise.”