Emmanuel OchayiThe Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan has announced a refund of over N1.2 billion to 34,000 depositors of 179 microfinance banks whose licenses were revoked by the Central Bank of Nigeria (CBN).
At the 2023 Sensitisation seminar held in Port Harcourt, Hassan, represented by the Executive Director of Operations, Mustapha Ibrahim, stressed the significance of the event, aimed at enhancing stakeholders’ understanding of NDIC’s operations and intricacies.
Join our WhatsApp ChannelThe theme of the seminar, “Strengthening Depositors’ Confidence in Banks and Other Financial Institutions through Speedy Dispensation of Justice,” was chosen to emphasize the need for a partnership with the judiciary to bolster Nigeria’s financial system stability.
Hassan spoke about NDIC’s primary responsibility of deposit guarantee, ensuring the protection of depositors’ funds. He explained, “The recent closure of 179 microfinance banks and four primary mortgage institutions has been resolved systematically. So far, we have successfully settled over 34,000 depositors of microfinance banks whose licenses were revoked by the CBN, disbursing N1.2 billion to these individuals. Liquidation is an ongoing process, not accomplished overnight.”
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Hassan also addressed the challenges facing NDIC, such as difficulties in executing judgments against the corporation, asset attachment, recovery of debts owed by failed banks, and bringing responsible parties to justice. He underscored the need for specialized winding-up rules for failed financial institutions.
Despite these challenges, Hassan highlighted the significant achievements made by the CBN and NDIC in resolving problem banks through various options like the bridge bank mechanism and purchase and assumption option, providing relief to depositors and claimants.
The Chairman of Investments and Securities Tribunal, Amos Isaac Azi, celebrated the tribunal’s effectiveness, explaining that by law, it must conclude matters within 90 days. The tribunal specializes in handling capital market-related disputes, earning international commendations for its swift resolution of disputes in the Nigerian capital market.
In his remarks, President of the National Industrial Court of Nigeria (NICN), Justice Bakwaph Kanyip, emphasized the importance of speed and flexibility in labor dispute adjudication. He urged the need for timely resolutions and raised concerns about certain practices in the financial sector, especially the assignment of deposit targets primarily to female employees.
The news of NDIC’s successful refunds to depositors of defunct microfinance banks illustrates the organization’s commitment to safeguarding the interests of Nigerian depositors and bolstering confidence in the nation’s financial institutions.
This proactive approach, combined with enhanced collaboration with the judiciary, aims to ensure the stability of the financial system in Nigeria.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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