NDIC begins payment of compensation to 42 banks’ customers

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The National Deposit Insurance Corporation has said that it has begun the payment of compensation to customers of 42 banks, whose licences were withdrawn by the Central Bank of Nigeria, last year.

The Managing Director and Chief Executive of NDIC, Mr Bello Hasan, made the disclosure at a workshop for law enforcement agencies in Abeokuta, the capital of Ogun State Monday.

Hasan, who did not disclose the amount that had been paid or the number of depositors that had been settled, said the NDIC would also release the assets of the affected banks to ensure that depositors are settled.

“The 42 banks that CBN withdrew their licences last year, we have already paid the insured amount and we are working hard to release the assets of those liquidated institutions so that we can pay depositors of those failed institutions. The customers are still coming forward to be paid,” Hasan said.

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To check alleged insider abuse and involvement in fraud and robbery incidents, Hasan advised banks to take measures right from the time they are employing their staff.

“Banks should strengthen their security. They should do a proper control and do a lot of background checks on their staff to ensure that they employ people that are fit and proper for employment,” he said.

The workshop, which drew participants from the legal department of financial regulatory agencies, banking supervision department and law enforcement agencies, has as its theme ‘Effective Investigation and Prosecution of Banking Malpractices in Nigeria.’

He also stated that despite the effects of the coronavirus pandemic in 2020 and other challenges, Nigeria’s banking system is still safe and sound.

Hassan said: “We know that we are passing through several unprecedented challenges in the industry, but despite this, the regulatory agencies are taking various measures to ensure that banks remain safe and sound.

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“According to report, despite the effects of the pandemic and looking at the various financial standing indicators, the banking system is safe and sound.

“Looking at capitalisation, the earnings and liquidity, I can confidently say based on these financial standing indicators, the Nigeria banking system is safe and sound and resilient.”

In his goodwill message, the Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, explained that the directive to bankers to declare their assets was not to persecute them, but to save Nigeria from another serious crisis in the banking sector.

The EFCC chairman said the directive, which was aimed at clearing “the rot that permeate the nation’s banking sector”, was misconstrued by some people he tagged “ignorants”.

Bawa, who was represented by the Lagos Zonal Commandant of the commission, Ahmed Muhammad Ghali, vowed that despite the stiff opposition of the policy, the anti-graft agency would not relent in its efforts in sanitising the country’s financial institution.

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He said that the policy became imperative to salvage the banking sector from corruption, insisting that Nigeria cannot afford to go through another serious crisis in the banking sector.

The EFCC chairman lamented what he called “a slew of corrupt practices in the banking sector”, disclosing that the commission had prosecuted and secured numerous convictions against bankers, including those who had retired from practice.

He called on bankers, financial institutions and other security agencies to partner with the commission in ridding the country of corruption and other financial crimes.

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