After Identifying 20 Failed Banks, NDIC Introduces New System to Pay Depositors

After Identifying 20 Failed Banks, NDIC Introduces New System to Pay Depositors

  • The NDIC has said that it introduced the Single Customer View to speed up payment to depositors
  • This comes after the Corporation had earlier identified some banks that failed in the country
  • The Corporation also highlighted that it is working closely with EFCC and other stakeholders

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that it introduced the Single Customer View (SCV) framework to enhance the speedy payment of insured sums to depositors of closed banks.

After identifying 20 failed banks, NDIC Introduces new mechanism to pay depositors
NDUC said the SCV has helped it simplify the process of identifying, verifying, and compensating eligible depositors. Photo Credit: Daily Trust
Source: UGC

Bello Hassan, the Managing Director/Chief Executive Officer of NDIC, said this at the 2023 NDIC workshop for business editors and members of the Finance Correspondents Association of Nigeria (FICAN) in Owerri.

The conference held in Owerri was themed, ”Stocktaking of Deposit Insurance Practice: Assessing the Now, Evaluating the Challenges and Forecasting the Future.”

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This comes after Legit.ng reported earlier that the NDIC listed the names of 20 failed banks and said it would pay their depositors.

SCV simplifying process

The SCV, according to the Corporation, has helped it simplify the process of identifying, verifying, and compensating eligible depositors. The initiative also ensures they receive their insured funds promptly upon bank closure.

According to a ThisDay report, Hassan stated that the NDIC had also enhanced collaboration with the bar and the bench.

He said this translates into the speedy dispensation of justice and more informed judgments on failed bank cases.

In addition, he said that the policy and framework on Alternative Dispute Resolution for out-of-court settlement are being put in place.

He said this has enabled the Corporation to resolve some protracted failed bank litigations.

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Hassan mentioned that the Corporation greatly increased its debt recovery rate by invigorating its liquidation activities.

He said that this has led to the declaration of 100% liquidation dividends to depositors of over 20 deposit money banks in liquidation.

The NDIC CEO revealed that the Corporation established a special desk at the Economic and Financial Crimes Commission (EFCC). According to him, this is aimed towards strengthening the investigation and prosecution of parties responsible for bank failures.

NDIC set to shut down Nigerian banks over default, lists cabal responsible for failure

Legit.ng reported that the NDIC has disclosed its plan to go after failing banks in the country.

Bello Hassan, its Managing Director, said the company would soon approach the Federal High Court to issue the winding-up rules for failed deposit-taking institutions under Section 56 of the NDIC Act 2023.

He made this known in Port Harcourt at a sensitization seminar organized for judges of national industrial courts and members of the investment and security tribunal.

Source: Legit.ng

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