NDIC Gives Assurance on Banking Reforms

ndic_umar_ibrahim… Appoints Debt Recovery Agents

The Nigeria Deposit Insurance Corporation (NDIC) has again reiterated that the ongoing banking sector reforms would foster the emergence of a sound banking system that would support sustainable economic growth and development.

Apart from the reassurance, the corporation has also appointed debt recovery agents to recover millions of Naira debt owed the 103 closed Microfinance Banks (MFBs) in the country.

Speaking at a two-day retreat for the NDIC board members in Abuja, Managing Director of the corporation, Alhaji Umaru Ibrahim, said that deposit insurance was an integral part of financial safety net which is designed to protect depositors and promote financial and social order, stressed that “it is generally recognized that a sound financial system required sound governance practices by all stakeholders.”

He said this informed the organization of the retreat, as part of the capacity building of activities lined up by the corporation for 2012.

Also speaking at the occasion, the chairman of the NDIC board, Ambassador Hassan Adamu commended the management and staffs of the corporation for their diligence and commitment in sanitizing the banking sector through timely interventions and advocacies. He also expressed gratitude to President Goodluck Jonathan for supporting the corporation in achieving its mandates and for retaining the NDIC board after dissolving boards of all government parastatals.

Meanwhile NDIC has appointed Debt Recovery Agents to hasten the recovery of debt owed the 103 closed Microfinance Banks (MFBs) in the country. Out of the total debts owed the banks that were closed down in 2010, only a sum of N102.6 million had been recovered. Out of this, N86.49 million was realised from the sales of chattels while N16.11 million was recovered from debts owed the banks.

The spokesperson of NDIC, Hadi Sule Birchi told the Economic Confidential that the Corporation is calling on all debtors of the affected banks to settle their debts or face the law. He said: “The debtors have also been advised to crosscheck the names and addresses of the recovery Agents assigned to the banks they are indebted to and make necessary arrangements to offset their debts.”

Lagos State has the highest number of 21 recovery agents for 68 closed MFBs followed by Rivers State with three Agents for six closed banks and Ogun State two Agents for four closed banks. Oyo State has one recovery Agent for four closed banks while Edo State and Federal Capital Territory have one recovery Agent for three closed banks each.

Others are Delta and Enugu states with one recovery Agent for two closed banks each while Osun State has one recovery Agent for one closed bank.

It is further discovered that the NDIC has recovered N22.3 billion for 34 banks in liquidation from 1994 to December 31, 2011.

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