LAGOS, Nigeria (VOICE OF NAIJA)–The Nigeria Deposit Insurance Corporation (NDIC) has expressed its support for the Central Bank of Nigeria’s (CBN) plan to recapitalize banks as a means to bolster economic resilience in the country.
Speaking during the NDIC Special Day at the ongoing 35th Enugu International Trade Fair, NDIC Managing Director Bello Hassan commended the CBN for its regulatory efforts aimed at ensuring stability in the Nigerian banking sector.
The fair, which began on 5 April, is themed: “Promoting made-in-Nigeria products for global competitiveness.”
Mr. Hassan pledged the NDIC’s commitment to collaborating with the CBN to ensure a smooth transition while safeguarding the interests of depositors.
He mentioned that with the changes happening in the world economy the CBN has intensified regulatory measures to fortify the resilience and stability of Nigeria’s banking sector.
The managing director pointed out a major move in this direction, which is the recent adjustment of higher minimum capital requirements for banks operating in Nigeria.
“Under this proposal, commercial banks would be required to maintain minimum capital levels of N500 billion, N200 billion, and N50 billion for international, national, and regional institutions.
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“As well as N50 billion for merchant banks, while national and regional non-interest banks are required to maintain N20 billion and N10 billion respectively.“
“This strategic recapitalisation initiative is in line with President Bola Tinubu’s administration urge to grow Nigeria’s economy to the ranks of $1 trillion base economies.
“This will not only strengthen the banking system but would also enhance the sector’s ability to withstand financial shocks,” he said.
Mr. Hassan disclosed that following the CBN’s revocation of licenses from 179 Microfinance Banks and four Primary Mortgage Banks in 2023, the NDIC has consistently and effectively distributed insured funds to verified depositors of these closed institutions.
He pointed out that depositors who completed verification and provided alternate account details received their payments smoothly within an unprecedented five working days.
“While it is worth noting that depositors with amounts exceeding the insured limit will receive liquidation dividends once debts are recovered and assets of the closed banks are disposed.
“Moreover, the NDIC strongly encourages depositors of the affected banks to come forward with their Bank Verification Number (BVN), proof of account ownership, proper identification, and/or alternative account details.
“Various channels are available for claims, including visiting nearest NDIC offices in person, using the NDIC App online, or accessing the Claims Page on the NDIC,” he said.
Earlier, President of the Enugu Chamber of Commerce, Odeiga Jideonwo, stated that the NDIC has provided Nigerians with peace of mind, ensuring the safety of their deposits.
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Mr. Jideonwo commended the Corporation for its efforts in guaranteeing financial stability, growth, and confidence in the financial sector. He remarked that the days when depositors were concerned about the safety of their deposits are now a thing of the past.
He also highlighted that the NDIC has been at the forefront of using the fair to educate depositors on safeguarding their bank accounts and deposits against fraudulent practices in the banking and financial sector.
“The Chamber is happy that the decade-long relationship with NDIC is very healthy and we envisage higher synergy in years to come,” he said.