The Nigeria Deposit Insurance Corporation (NDIC) has assured depositors of closed microfinance banks (MfBs) and mortgage banks of the prompt payment of their insured sums. The NDIC made this announcement through a statement on its website, where it provided details of the banks involved in the liquidation process.
Depositors affected by the bank closures are encouraged to provide alternate bank accounts in commercial banks for the receipt of their payments. Those who do not have an alternate bank account and those whose identities are yet to be verified should visit the nearest NDIC office with proof of account ownership and valid identification for verification and payment.
For depositors who had deposits exceeding the insured limits of ₦200,000 for microfinance banks and ₦500,000 for primary mortgage banks, the NDIC stated that it has initiated the sale of the banks’ assets to settle their balances. The statement emphasized that the NDIC does not provide insurance coverage for deposits above these limits.
The Managing Director of NDIC, Bello Hassan, reaffirmed the commitment of the organization to upholding high standards during the payment process. He emphasized the role of NDIC as a vital component of the country’s financial safety-net arrangement, working alongside the Central Bank of Nigeria (CBN) in ensuring the stability and security of the banking system.
It’s important for depositors to follow the guidelines provided by NDIC to ensure a smooth and efficient payment process for their insured sums.
Keywords: NDIC, microfinance banks, mortgage banks, deposit insurance, payment process, insured sums
My Opinion: The reassurance by the Nigeria Deposit Insurance Corporation (NDIC) to depositors of closed microfinance banks and mortgage banks is an important step in maintaining public confidence in the financial system. Deposit insurance plays a critical role in safeguarding the interests of depositors, especially in situations where financial institutions face challenges or closures.