NDIC Begins Liquidation Of 182 Insolvent Banks Axed By CBN

By Our Correspondent

Towards ensuring financial stability and sustainable economic development as envisaged by the current Federal Government, FG, led by President Bola Tinubu, the Nigeria Deposit Insurance Corporation, NDIC, has assured that machinery was in place to ensure smooth liquidation process of no fewer than 178 Micro Finance Banks, MFBs, and four Primary Mortgage Banks, NFBs, whose operational licences had been withdrawn by the Central Bank of Nigeria, CBN, over insolvency and non recapitulation.

Speaking at a two – day workshop for senior management executive staff of the NDIC, held in collaboration with the Bureau of Public Procurement BPC, yesterday at the Four Points By Sheraton Hotel, Ikot Ekpene Local Government Area of Akwa Ibom state, the Managing Director, MD, of NDIC, Bello Hassan, stressed the need for efficiency and transparency in public procurement processes by Ministries, Departments and Agencies, MDAs, as well as Corporations for the overall wellbeing of the country.

Represented by the Director of Operations, DoP, of the agency, Mustapha Ibrahim, the NDIC Chief Executive Officer, CEO, the firm is seriously neck-deep in ensuring proper and effective liquidation of the no fewer than 178 MFBs and four PMBs by ensuring seamless settlement of customers, recovery of debts owed the affected banks, sale of physical assets and payment of liquidation dividends on the uninsured sum

He said: “The NDIC will continue to play its role as a key player in the financial safety net arrangement of the country’s banking system as a deposit insurance in line with the lender of last resort’s function of the CBN. These components will continue to safeguard the safety and soundness of the banking system as well as promoting financial stability.

“In that regard, following the recent revocation of licences of 178 NFBs by the CBN, and four PMBs, the NDIC has commenced the liquidation exercise with the main purpose of paying the guaratied sum, recovery of debts owed the banks, sale of physical assets and payment of liquidation dividends on the uninsured sum.

“The NDIC is hereby assuring the depositors of the closed banks of speedy payment of their insured sums as the Corporation is leaving no stone unturned to ensuring that no room is left for public panic over the safety of banks’ deposits. This will create the enabling environment for the financial system to appropriately support the economic advancement of our great nation, and also contribute meaningfully to the financial system stability.”

In the same vein, the Director General, DG, Bureau for Public Procurement, BPP, Mamman Ahmadu, represented by a senior Director of the agency, Aliyu Aliyu, underscored the importance of the workshop as a major avenue over the years to strengthen collaboration and synergy with the NDIC to enhance due process in public procurement in line with the relevant sections of the Public Procurement Act, PPA, 2007, as amended.

He, therefore, stressed the need for imbibing the electronic procurement (e -procurement) system, which he noted, was effective and transparent in order to curtail frauds and other financial crimes in the procurement regime by various Ministries and Agencies of government.

“You must have your procurement plans before you begin procurement,” he stressed and charged those saddled with such responsibilities to imbibe highest level of integrity and transparency as enshrined in the BPP Act