Total Deposit Liabilities at N17.3tn – NDIC Boss

The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC) Alh. Umaru Ibrahim, disclosed that as at December 2015, the total deposit liabilities of all the deposit money banks (DMBs) which had about 67 million depositors tied to it, amounted to N17.3tn said Alh. Umaru Ibrahim,

Speaking in Jos, during a lecture titled: “NDIC and Engendering Confidence in the Financial Services Sector for Poverty Reduction and Economic empowerment” which was organised for participants of Executive Course No 38, 2016 at National Institute for Policy & Strategic Studies Kuru, he also said a total of N165.5 billion which belonged to 8.4 million depositors of microfinance banks (MFBs) as well as N73.71 billion linked to 0.73 million depositors of primary mortgage banks (PMBs) were further covered by over 95 percent.

Alh. Umaru also suggested the re-establishment of Nigeria Savings Bank to expand the frontiers banking system in the country while currently considering the introduction of electronic deposit payment system to facilitate depositor payout within the shortest possible time.

He said the desire to efficiently use post offices and leveraging information and communication technology (ICT) to facilitate financial intermediation would not only mobilise savings but also give access to credits while citing Britain, which in the last decade transformed it’s post offices into avenues of harnessing savings and credits creation as an example.

Ibrahim however, noted that the Central Bank of Nigeria (CBN) and Ministry of Communication had been discussing the modalities for effective transformation of post offices so as to serve as banks’ agents.

In a statement signed by Head, Commnication and Public Affairs Department, NDIC, Alhaji Hadi Birchi, the NDIC Chief Executive reminded the participants that the Deposit Insurance Scheme (DIS) was one of the critical components of Financial System Safety-Net arrangement and financial guarantee to depositors, particularly the small depositors in the event of a bank failure. He pointed out that any financial system that did not have a DIS could not be said to have a complete Financial Safety-Net arrangement.