Nigeria: NDIC assures on banks’ stability

Nigeria-Deposit-Insurance-Corporation-NDIC12 November 2014, Lagos — The Nigerian Deposit Insurance Corporation (NDIC) has assured bank customers that all banks in the country are healthy, and all deposits are properly covered by the corporation’s mandatory insurance.

The Deputy Director, Banking Examination of the NDIC, Mr. Mohammed Y. Umar, who stated this yesterday at the NDIC’s sensitisation programme for youth corps members at the NYSC orientation camp, Sagamu, Ogun State, pointed out that no Nigerian bank is currently on the brink of collapse and so no customer should panic even if any bank gets into a problem.

He, however, noted that 98 per cent of accounts in all the deposit money banks in the country have balances of less than N500,000, which have all been adequately covered by the NDIC.

He said the sensitisation forum was to educate corps members and indeed the general public about the workings of the NDIC and Nigeria’s financial system.

“The issue of a deposit insurer is accepted worldwide but low awareness about its value still exists because we are only relevant when a bank collapses.

“Once you get to the bank and get your money, you don’t really care if NDIC exists or not. You only look for NDIC when there is a problem with your bank,” he said.
*Chris Agabi – Daily Trust

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