The Nigeria Deposit Insurance Corporation (NDIC) as a regulator of all financial institutions (Including MFB and Mortage Institutions) in Nigeria was established under Decree 22 of 1988 now replaced with the Act No 15 of 2006.
It is an independent agency of the Federal Government of Nigeria with the purpose of protecting depositors and guarantee the settlement of insured fund when a deposit taking financial institution can no longer repay their depositors. Thereby helping to maintain financial system stability
All deposit money banks (Universal Banks); Microfinance Banks (MFB) and Primary Mortage Institution (PMI) are covered by deposit insurance. Insurance premium is however born by the banks and not depositors.
Development Finance Institutions (BOI; FMB; NACRD and UDB) are not covered by NDIC. Other Finance Institutions not covered includes: Finance Companies; Discount Houses; Investment Firms; Unit Trust/Mutual Funds; Insurance Companies and PFAs.
The deposit covered are Savings account; Current account; Time or Term Deposit; Foreign Currency account deposit (Payment of Insurance obligations are made in Nigerian currency, Naira).
Monies not covered by NDIC includes: Bonds; Stocks; Mutual funds; Annuities; Commercial paper; Debentures; Interbank placement; Deposit held as collateral for loans; Insider deposit (Deposit of staff, directors and other connected parties).
Coverage amount is a total of #500,000 and #200,000 (Principal and Interest combined) per depositor for Universal Bank and MFB/PMI respectively.
Depositors can however increase his or her coverage by depositing monies in several insured institutions but cannot increase coverage by having several accounts in same institution except if it is differentiated by ownership category (Individual- single, Joint account, Business accounts and Trust accounts).
Fact and Figures
Summary Of Payments To Depositors/Creditors Of Banks In Liquidation As At 31st December, 2013
Number of banks in liquidation 48
Number of depositors 528,295
Pay-out Sum #6,770 billion
Liquidation Dividend #73,749 billion
699 Other creditors in 8 banks were paid #981.52 million
422 Shareholders in 3 banks were paid 567.55 million
13 banks were liquidated under Purchase and Assumptions Mechanism with 153.52 million paid to 94 customers.
14 banks had all their depositor paid 100% of their deposits after liquidation
Verification and payment on-going for 24 Primary Mortgage Institutions in liquidation
75,533 customers of 103 Micro Finance Banks (MFB) )-In- Liquidation has been paid #2,505 billion
in Debt Recovery, #25.31billion was recovered from debtors of 48 Deposit Money Banks (DMB)-In- Liquidation, while #45.20million was recovered from 94 Micro Finance Banks (MFB) )-In- Liquidation.
#19.744 billion worth of physical assets belonging to 48 Deposit Money Banks (DMB)-In- Liquidation was disposed while #172.76million worth of physical assets belonging to 103 Micro Finance Banks (MFB) )-In- Liquidation was disposed