NDIC Enhances Early Detection of Bank Vulnerabilities

Mr. Thompson Oludare Sunday, Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), announced on September 29 that the NDIC is intensifying efforts to identify vulnerabilities in financial institutions to prevent financial crises. Speaking at the NDIC Special Day during the 21st Abuja International Trade Fair organized by the Abuja Chamber of Commerce, Industry (ACCI), he emphasized the corporation's role as a "risk minimizer" rather than just a claims payer after bank failures.

The NDIC's supervisory activities include examining banks' financial records and assessing loan portfolio quality. The corporation has strengthened its framework through various systems, including Risk-Based Supervision and the Bank Liquidation Management System, while collaborating with the Central Bank of Nigeria (CBN).

In 2024, the NDIC raised the maximum insured deposit limit to N5 million for Deposit Money Banks and N2 million for Microfinance Banks, providing coverage for over 98% of depositors. The reimbursement process has been improved using technology, allowing verified depositors to receive payments within days of bank closures.