NDIC Guarantees Swift Payment of Insured Sums for Depositors of Failed Banks

NDIC Guarantees Swift Payment of Insured Sums for Depositors of Failed Banks

The Nigeria Deposit Insurance Corporation (NDIC) has reassured depositors of its commitment to swiftly and efficiently pay insured sums in the event of bank failures. This assurance was given by Mr. Daniel Udechukwu, the Deputy Director of the Bank Examination Department, during a workshop in Owerri.

Udechukwu highlighted the NDIC’s prompt payment track record, citing recent instances where depositors of microfinance banks in liquidation received their insured sums in a matter of weeks. He emphasized the corporation’s dedication to meeting international standards in distress resolution, acknowledging the evolving need for more strategic approaches.

During the workshop titled “Recent Developments in Bank Distress Resolution: Lessons for Nigeria,” Udechukwu discussed various bank resolution options, including purchase and assumption, liquidation, deposit transfer, bridge bank, and merger and acquisition.

Mr. Imade Uhunmwagho, the Director of the Information Technology Department at NDIC, emphasized the role of technology in facilitating quick payments. He noted that, with technological advancements, the corporation was able to disburse insured sums to depositors of Microfinance Banks within seven days.

The NDIC officials underscored the corporation’s commitment to transparency and efficiency, urging the media to convey the positive changes and assure depositors that NDIC has evolved to meet contemporary standards in the banking sector.


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