NDIC Supports CBN’s Move to Recapitalise Nigerian Banks

April 14, 2024
Alpha Merchant Bank NDIC

By Adedapo Adesanya

The Nigeria Deposit Insurance Corporation (NDIC) has lauded the Central Bank of Nigeria (CBN) for its move to recapitalise Nigerian banks to achieve economic resilience in the country and pledged a seamless collaboration towards achieving the effort.

Recall that the CBN mandated financial institutions to recapitalise within the next 24 months based on their spread. This ranged from N10 billion to as high as N500 billion.

The Managing Director of NDIC, Mr Bello Hassan, who made the commendation during the NDIC Special Day at the ongoing 35th Enugu International Trade Fair, said the agency would continue to collaborate with the apex bank in ensuring a seamless transition while safeguarding depositors’ interest.

The fair began on April 5 and is themed Promoting made-in-Nigeria products for global competitiveness.

Mr Hassan said in light of the ongoing global economic dynamics, the CBN has stepped up regulatory efforts to ensure the resilience and stability of the Nigerian banking sector.

The managing director said that a significant stride in this direction remained the recent revision and pegging of higher minimum capital requirements for banks operating in Nigeria.

“Under this proposal, commercial banks would be required to maintain minimum capital levels of N500 billion, N200 billion, and N50 billion for International, national, and regional institutions.

“As well as N50 billion for merchant banks, while national and regional non-interest banks are required to maintain N20 billion and N10 billion respectively.

“This strategic recapitalisation initiative is in line with President Bola Tinubu administration’s urge to grow Nigeria’s economy to the ranks of $1 trillion base economies.

“This will not only strengthen the banking system but would also enhance the sector’s ability to withstand financial shocks,” he said.

Mr Hassan revealed that since the CBN revoked the licenses of 179 Microfinance Banks and four Primary Mortgage Banks in 2023, the NDIC had continued to efficiently disburse insured sums to verified depositors of these closed institutions.

He noted that depositors, who had undergone verification and had provided alternative account details, had received their payments seamlessly within a record period of five working days.

“While it is worth noting that depositors with amounts exceeding the insured limit will receive liquidation dividends once debts are recovered and assets of the closed banks are disposed.

“Moreover, the NDIC strongly encourages depositors of the affected banks to come forward with their Bank Verification Number (BVN), proof of account ownership, proper identification, and/or alternative account details.”

According to the NDIC MD, various channels are available for claims, including visiting the nearest NDIC offices in person, using the NDIC App online, or accessing the Claims Page on the NDIC website: www.ndic.gov.ng. This can also be done via through the Toll-Free Help Desk Line at 0800 634 424 357.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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