NDIC To Nigerian Depositors: Your Money Is Safe In Banks

NDIC To Nigerian Depositors: Your Money Is Safe In Banks

The Nigeria Deposit Insurance Corporation (NDIC), has assured depositors not to worry about their money in banks, saying their assets are safe even if the financial institutions collapse.

Kabiru Katata, Director, Research Policy and International Relations Department of NDIC, gave this assurance.

According to the NDIC chief, the corporation had a strong safety net system in collaboration with the Central Bank of Nigeria (CBN).

While encouraging depositors to lodge complaints in any circumstance they got unfair treatment, Katata described deposit insurance as a safety net instrument used by the government to ensure the stability of the banking system and to protect depositors.

“No CBN, NDIC staff will tell you that any bank is having issues so, if you hear the rumours, discard them.

“In an unlikely event where it is true, it will be announced, and be assured that 99.9% of your deposits are safe.

“Once in a while, there might be issues but the safety net system is strong. NDIC has its resolution power, CBN has their own too,” he explained.

Speaking further on the safety of Nigerian bank users, Katata said that no country would achieve development without the majority being involved in the financial system, adding that without financial inclusion, poverty would not be effectively eradicated from the country.

The NDIC director, however, listed some challenges faced by the corporation to include legal challenges to revocation and liquidation activities and a lack of public awareness of the Deposit Insurance System (DIS).

He said that the corporation also conducted cyber-security examinations in conjunction with the CBN to review the adequacy of information technology controls put in place by banks.

Leave a Reply