NDIC intervention saved N950billion deposits in Skye Bank- NDIC CEO

…May pay deposits in recently liquidated MFBs 100%

The Managing Director/Chief Executive Officer of Nigeria Deposit Insurance Corporation, NDIC, Mallam Umaru Ibrahim, has disclosed that the step which it took recently, in collaboration with the Central Bank of Nigeria, CBN, to resolve the failure of erstwhile Skye Bank Plc, saved deposits which were in excess of N949.60 billion Naira.

Speaking at the NDIC Special Day at the on-going Lagos International Trade Fair, Ibrahim explained that the bridge bank option which NDIC adopted and by which Polaris Bank Limited came on board also saved over 6000 jobs and ensured continued operations in the 277 branches of the bank.

In his words, “With this expert management, the Polaris was able to continue banking operations in the 277 branches of the bank, over 6000 jobs were saved ad depositors have unhindered access to deposits in excess of N949.60billion as at June 2018”.

Shedding some light on the bridge bank option in resolving bank failure, the NDIC boss said, “A bridge bank is a temporary bank created to operate a failed bank until a buyer can be found” adding that the option is “less disruptive to rendition of bank services, unlike outright liquidation or depositors’ payoff”. The option, he concluded, is also less costly to the entire macro-economy while staff are retained in the bridge bank.

On the 154 Micro Finance Banks which licenses were revoked recently by the CBN, Mallam Ibrahim said that his organization might pay the depositors of the banks their entire deposits. This, he said, was because majority of the depositors had less than the N200,000:00 which is the maximum insured coverage for depositors of Micro Finance Banks, in their accounts.

According to him, “The NDIC has commenced verification of insured depositors and will soon start paying the verified claims to appropriate depositors… From the record obtained so far, majority of the depositors, especially of the MFBs, have less than N200,00.00 in their accounts, which implied that the NDIC will hopefully cover 100 per cent of the deposited funds in the MFBs”.

The NDIC, it would be recalled, is a statutory agency of government established in 1989 as a critical member of the Nigerian financial safety-net with such primary objectives as safeguarding bank depositors and promoting public confidence in the entire financial system; these objectives deriving from its core mandates of Deposit Guarantee, Bank Supervision, Distress Resolution and Bank Liquidation.



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