Business
NDIC Strengthens Judicial Partnership to Expedite Recovery of Depositors’ Funds
The Nigerian Deposit Insurance Corporation (NDIC) has announced a strengthened partnership with the judiciary aimed at expediting the prosecution of failed financial institutions. NDIC Managing Director Bello Hassan revealed this initiative on Monday during the 19th Abuja International Trade Fair, themed “Mobility: Options for Transport, Trade Finance, and Taxation.”
Hassan highlighted that this collaboration has successfully resolved long-standing cases, allowing the NDIC to declare 100 percent liquidation dividends to uninsured depositors of over 20 closed banks. He emphasized the critical role of deposit insurance in maintaining financial stability, ensuring that depositors are promptly compensated when banks fail, in accordance with the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023.
Amid rising concerns over bank failures, stakeholders are increasingly demanding legal accountability from board directors involved in these collapses. Hassan reassured customers that the NDIC is actively addressing the issue of impunity among bank board members and has taken steps to prosecute those responsible for the failures.
“The importance of deposit insurance cannot be overstated in a financial system where confidence is essential. It acts as a safety net that reassures depositors, builds trust in the banking system, and helps to prevent bank runs during periods of uncertainty,” Hassan stated.
He noted the NDIC’s success in implementing Alternative Dispute Resolution mechanisms to enhance liquidation activities and improve debt recovery. Discussing the payment of insured deposits related to the recent closure of Heritage Bank, Hassan revealed that the NDIC has successfully compensated 84.98 percent of depositors with Bank Verification Number (BVN)-linked accounts.
“In a significant achievement, NDIC began payments within four days of Heritage Bank’s closure. By using depositors’ BVNs as unique identifiers, the corporation was able to efficiently identify alternate accounts and directly credit insured amounts of up to N5 million,” he explained.
The President of the Abuja Chamber of Commerce and Industry, Emeka Obegolu, praised the NDIC’s commitment to safeguarding depositors and strengthening the banking system, underscoring its vital role in fostering economic growth and facilitating trade and investment.
“The NDIC has been a critical player in safeguarding depositors, promoting confidence in our banking system, and ensuring the soundness of the financial sector,” Obegolu remarked. He highlighted the importance of a stable financial system for efficient movement of goods, services, and capital, which are essential for national development.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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