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NDIC BOSS ASSURES 97% OF DEPOSITORS COVERAGE IN EVENT OF BANK FAILURE

The Managing Director, Nigeria Deposit Insurance Corporation (NDIC), has assured depositors that in the event of bank failure, above 97 per cent of depositors would be fully covered by the Corporation.

Mallam Bello Hassan  gave the assurance during the 2021 FICAN Workshop organised by NDIC for Finance Correspondents and Business Editors in Gombe.

The workshop has “Enduring Extreme Disruption: Resilience and Reinvention for Banking System Stability and Deposit Insurance ” as it’s theme.

The NDIC boss said that the corporation’s total number of accounts in the deposit money banks in 2016, 2017, 2018 and 2019, stood at 83.0 million; 99.1million; 112.0 million and 128.4 million respectively.

According to him, out of these numbers, the N500,000 coverage limit fully covered 99.4%, 97.6%, 97.5% and 97.6% of accounts, respectively.

Mallam Hassan said the Corporation’s maximum coverage limits remained the most adequate and robust in the world.

He highlighted slow recovery as a challenge, noting that if the act is to be amended, the corporation will be empowered to be able to recover those assets as expeditiously as possible and also pay depositors effortlessly.

According to him, the coverage limit fully covered 99.4%; 97.6%, 97.5% and 97.6% of accounts, respectively.

By implication, the figures entails that only less than three per cent of accounts or depositors are not fully covered by the prevailing coverage limits, and in the event of failure of a bank, above 97per cent of depositors would be fully covered by the Corporation.

He said the Corporation’s deposit insurances coverage limits are not only adequate but robust enough to engender confidence in the banking system.

The director  communication and public affairs, Mallam Bashir Alhassan Nuhu urged journalists to sensitize the public on NDIC’s maximum coverage limits of N500,000.00 per depositor per commercial, merchant and, non-interest bank, primary mortgage bank and mobile money operator, as well as N200,000.00 per depositor per microfinance bank remain the most robust in the world.

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