Bank’s N949bn deposits intact, NDIC assures customers

Nigeria Deposit Insurance Corporation (NDIC), has assured customers of the defunct Sky Bank Plc, of maximum guarantee and unhindered access to their deposits in excess of N949.60 billion.

Besides, the Corporation revealed that plans have been concluded to settled over N200,000 insured deposits to customers of micro finance banks (MFBs) shut by Central Bank of Nigeria (CBN).CBN recently revoked the licences of 154 MFB’s and six PMB’s due to erosion of their capital base, poor liquidity, inept management and other insolvency tendencies.
NDIC Managing Director, Umaru Ibrahim, disclosed this yesterday during the Corporation’s special day at the ongoing 39th Kano International Trade Fair, held at fair complex.

He explained that NDIC adopted bridge bank option on the defunct Sky Bank, to prevent it from outright liquidation that would be more disruptive. Umaru posited that the ingenuity of the bridge method for the near-collapsed, Sky Bank saved over 6,000 jobs, and enabled the Polaris to sustain operations across the 278 branches of the Bank.

Represented by the Controller, NDIC Zonal Office, Kano, Bashir Nuh, he insisted that the agency will continue working closely with the CBN to ensure effective supervision of the financial institutions; to adhere strictly to rules and regulations guiding banking operations.

“This is to protect depositors in the domestic financial system against fragrant disregard of extant rules by management of financial institutions. The collaboration with the CBN will help to minimise the occurrence of unlawful insiders’ dealings, weak internal control and overall non-compliance to prudential guidelines.”

Umar said the NDIC has commenced the process of verification of insured depositors after which payment of verified claims to appropriate depositors will kick-off.

“The action of CBN to revoke those MFBs and PMBs became necessary due to their insolvency and the boisterous life style of their management that remained at variance with the philosophy of microfinance banking operations.“NDIC has commenced verification of insured depositors and will soon start paying the verified claims to appropriate depositors in fulfilment of our mandate.

From the record obtained so far, majority of the depositors especially in the MFBs, have less than N200,000 in their accounts, which implied that the NDIC will hopefully cover 100 per cent of the depositors’ funds in the affected MFBs.” Umaru assured.

He also hinted that at the end of 2017, the Corporation recorded 153 million accounts in the 23 duly licensed Mobile Money Operators. He added that despite the obstruction of scope and depth of banking regulations the new banking system created, NDIC is providing maximum limit of N500,000 for the MMOs, through the pass-through deposit insurance framework.
Umaru lauded the theme of the 39th Kano International Trade Fair “Ease of Doing Business for Sustainable Development in Nigeria,” saying the intent was in line with the principles of the Federal government’s Economic Recovery and Growth Plan (ERGP), targeted at fast-tracking the nation’s economic growth.