Nigeria Deposit Insurance Corporation

Nigeria Deposit Insurance Corporation
Nigeria Deposit Insurance Corporation
Formation 15 June 1988
Type Regulatory body
Purpose/focus Provide security in the banking industry
Official languages English
Managing Director/CEO Mr. G. A. Ogunleye
Website http://www.ndic.org.ng/

The Nigeria Deposit Insurance Corporation (NDIC) was established on 15 June 1988 to strengthen the safety net for the newly liberalized banking sector, following the recommendation of former Central Bank of Nigeria governor Ola Vincent. The NDIC provides a safety net for depositors in the newly liberalized banking sector.[1].

Organization

The NDIC is a parastatal under the Nigerian Ministry of Finance. The corporation is charged with protecting the banking system from instability occasioned by runs and loss of depositors' confidence.[2] It operates under the Nigeria Deposit Insurance Corporation Act (1990).[3] The NDIC is a member of the Financial Reporting Council of Nigeria.[4] The NDIC complements the regulatory and supervisory role of the Central Bank of Nigeria (CBN), although it reports to the Federal Ministry of Finance. The NDIC advises the CBN in the liquidation of distressed banks and manages distressed banks' assets until they are fully liquidated.[5]

The NDIC has a supervisory role over insured banks. In April 1996, the Chief Executive of NDIC said that the corporation had 514 case files of insider abuse and corruption for the police to prosecute.[6] In December 2007, the NDIC announced that as of January 1, 2008 it would start providing deposit insurance services to microfinance institutions in Nigeria.[7]

Activity

In February 2002, the governor of the Central Bank, Joseph Oladele Sanusi, issued a notice revoking the license of Savannah Bank, saying the bank did not have enough assets to meet liabilities and did not comply with CBN obligations, and that the regulators had prevent further deterioration. The NDIC took over as liquidator, sealing the bank's offices. The matter dragged through the courts, with the bank's owners eventually being awarded damages of N100 million in February 2009.[8]

Under a Purchase & Assumption arrangement, the NDIC may arrange for the assets and liabilities of a failed bank to be taken over by another bank. For example, in October 2007 the United Bank for Africa assumed the fixed assets and private sector deposit liabilities of African Express Bank under direction of the CBN and the NDIC.[9]

At times, the NDIC has been caught up in controversy over legal actions against managers and others who have caused insured banks to fail.[10] Shortly before his retirement in July 2009, the Nigeria Deposit Insurance Corporation accused the Inspector General of Police Mike Okiro of failing to repay a N166 million loan he obtained between 2000 and 2001 from the Lead Bank, since liquidated.[11]

References

  1. ^ Williams Ekanem (May 3rd, 2009). "Men that Shaped the Central Bank of Nigeria". Business World. http://businessworldng.com/web/articles/431/1/Men-that-Shaped-the-Central-Bank-of-Nigeria/Page1.html. Retrieved 2010-03-02. 
  2. ^ "About NDIC: History". Nigeria Deposit Insurance Corporation. http://ndic.org.ng/history--rationale--for-establishing-ndic-2.html. Retrieved 2009-09-28. 
  3. ^ "Nigeria Deposit Insurance Corporation Act". International Centre for Nigerian Law. http://www.nigeria-law.org/Nigeria%20Deposit%20Insurance%20Corporation%20Act.htm. Retrieved 2009-09-28. 
  4. ^ "Member Bodies". NASB. http://www.nasbnigeria.org/index.php?option=com_content&view=article&id=65&Itemid=178. Retrieved 2011-06-05. 
  5. ^ "Nigeria Banks: Bank Regulators". Economist Intelligence Unit. http://www.finreg21.com/news/nigeria-banks-bank-regulators. Retrieved 2009-09-28. 
  6. ^ "Nigeria Clamps Down on Rogue Bank Directors". New Straits Times. Apr 13, 1996. http://news.google.com/newspapers?id=O3EWAAAAIBAJ&sjid=sB4EAAAAIBAJ&pg=5766,1047930&dq=nigeria-deposit-insurance-corporation. Retrieved 2009-09-28. 
  7. ^ "Nigerian Deposit Insurance Corporation (NDIC) Insures Microfinance Institutions". Prisma MicroFinance Inc.. December 17, 2007. http://www.microcapital.org/microcapital-story-nigerian-deposit-insurance-corporation-ndic-insures-microfinance-institutions/. Retrieved 2009-09-28. 
  8. ^ "Case Review: Savannah Bank Plc c. Central Bank of Nigeria". Perchstone & Graeys. http://www.perchstoneandgraeys.com/uploads/pub_files/savannah_bank_plc_vs._central_bank_of_nigeria_&_2_ors.pdf. Retrieved 2010-03-01. 
  9. ^ "UBA takes over Afex Bank …Pays out N9bn to customers of acquired banks". Daily Sun. October 10, 2007. http://www.sunnewsonline.com/webpages/news/national/2007/oct/10/national-10-10-2007-003.htm. Retrieved 2009-09-28. 
  10. ^ "NDIC Forecloses Soft Landing for Failed Bank Chiefs". This Day. April 12, 2009. http://www.scribd.com/doc/14164035/Nigerian-Deposit-Insurance-Corporation-NDIC-Forecloses-Soft-Landing-for-Failed-Bank-Chiefs-by-Festus-Akanbi-of-ThisDay-Newspaper. Retrieved 2009-09-28. 
  11. ^ "Okiro owes failed bank N166m - NDIC - It’s a personal deal - Police - Reps summon him". Nigerian Tribune. July 23, 2009. http://odili.net/news/source/2009/jul/23/603.html. Retrieved 2009-09-26. [dead link]

Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Deposit insurance — Experiences from bank runs during the Great Depression led to the introduction of deposit insurance in the US …   Wikipedia

  • Chartered Institute of Bankers of Nigeria — The Chartered Institute of Bankers of Nigeria (CIBN) is the umbrella professional body for bankers in Nigeria. The CIBN was incorporated in 1976 as the Nigerian Institute of Bankers. It was chartered in 1990, and is now covered by the CIBN Act 5… …   Wikipedia

  • Ministry of Finance (Nigeria) — The Nigerian Ministry of Finance is the government body that manages the finances of the Federal Government of Nigeria, including managing, controlling and monitoring federal revenues and expenditures.[1] Contents 1 Services 2 Leadership 3 …   Wikipedia

  • Financial Reporting Council of Nigeria — Formation 1982 Type Regulatory body Purpose/focus Set standards for accountancy in Nigeria Headquarters Lagos, Nigeria Official lan …   Wikipedia

  • List of companies of Nigeria — This is a list of Nigerian companies. The companies are currently listed by sector. The list is incomplete.Quasi governmental corporations* Central Bank of Nigeria * Federal Department of Antiquities * National Commission for Museum Monuments *… …   Wikipedia

  • Mike Mbama Okiro — Inspector General of the Nigerian Police In office 2007 – 2009 Preceded by Sunday Ehindero Succeeded by Ogbonna Okechukwu Onovo …   Wikipedia

  • Ola Vincent — Governor of the Central Bank of Nigeria In office 28 June 1977 – 28 June 1982 Preceded by Adamu Ciroma Succeeded by Abdulkadir Ahmed Personal details …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Federal Reserve System — FRB and FED redirect here. For other uses, see FRB (disambiguation) and FED (disambiguation). Federal Reserve System …   Wikipedia

  • Late-2000s financial crisis — The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”