By David Akinmola
The Nigeria Deposit Insurance Corporation (NDIC) said depositors of 20 liquidated deposit money banks (DMBs) have been paid 100 percent of their trapped funds as of September.
The Corporation also revealed that it successfully paid out N11.83 billion to 443,949 depositors of insured financial institutions in liquidation as of June 30.
Besides, it paid over N101.37 billion to uninsured depositors of all categories of banks in liquidation since its inception.
According to the NDIC, the liquidation activities cover a total of 467 insured financial institutions, comprising 49 DMBs, 367 microfinance banks (MFBs), and 51 primary money banks (PMBs).
These come as the Corporation has extended insurance coverage to 981 financial service providers, which cut across the entire spectrum of the ecosystem.
NDIC Managing Director, Bello Hassan, disclosed this yesterday while declaring open the 2022 NDIC workshop for business editors and members of the Financial Correspondent Association of Nigeria (FICAN) in Port Harcourt, Rivers State.
Hassan said out of the 49 DMBs in liquidation, the Corporation in September, declared 100 per cent liquidation dividends in 20 of those institutions. This means the organisation had raised enough funds from the disposal of assets of the affected banks to pay all their depositors fully.
Hassan disclosed that NDIC had in May, with the active participation of relevant stakeholders, developed and deployed the Single Customer View (SCV) platform to strengthen data collection on MFBs and PMIs.
“The platform would not only ensure availability of quality, timely and complete data to the NDIC but would eliminate delays often experienced in reimbursing depositors following revocation of institutions’ licenses by the CBN. The final phase of the implementation of the SCV for DMBs will be achieved through the incorporation of the SCV template as part of the ongoing Integrated Regulatory Solution (IRS) jointly being developed with the CBN.
“Also in the area of consumer protection, the Corporation has strengthened its complaints resolution platforms, which include the toll-free help desk, social media handles and complaints desks in the bank examination, special insured institutions and claims resolutions departments, as well as our zonal offices, to receive and process complaints from depositors,” he said.
He noted that NDIC, at the end of the second quarter of the year, provided deposit insurance coverage to a total of 981 insured financial institutions. The breakdown comprises 33 DMBs, 882 MFBs, 34 PMBs, three payment service banks (PSBs), and 29 mobile money operators.
The Corporation, he said, was determined to scale up the deposit insurance framework, provide timely support to insured institutions, ensure faster and orderly resolutions of liquidation and assist the Central Bank of Nigeria (CBN) in promoting the stability of the banking system.
“Over time, we have embarked on a series of strategic initiatives to achieve our desired vision,” he said.
In a paper titled, ‘Rising Ponzi Schemes and Investment Scams in Nigeria’’, NDIC Director of Research and Strategic Policy, Michael Oladele, described Ponzi schemes as a major risk to the economy and financial stability.
Oladele said most of the schemes spring “when the economy is not good like now” and that people without adequate information on other better investment outlets fall victims.
Quoting The Guardian report, he lamented that over N200 billion was lost to Ponzi schemes in 2016 just as another N171 billion was also lost to the Maxwell Udom scheme almost at the same time.
