Should there be Bank Failure, NDIC Boss Assures Above 97% Depositors Funds are Insured, SafeYour support matters. Sustain independent journalism in Nigeria – contribute to Legit.ng. Bello Hassan, Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), has assured depositors that in the event of failure of a bank, above 97 per cent of depositors would be fully covered by the Corporation Hassan gave the assurance at the 2021 FICAN Workshop organised by NDIC for Finance Correspondents and Business Editors on Tuesday in Gombe. The Guardian Newspaper, quoted Hassan as saying that the total number of accounts in the deposit money banks in 2016, 2017, 2018 and 2019, stood at 83.0 million; 99.1million; 112.0 million and 128.4 million respectively. Recommended for you INEC chairman releases list of states where governorship elections will not... According to him, out of these numbers, the N500,000 coverage limit fully covered 99.4per cent; 97.6per cent; 97.5 per cent and 97.6per cent of accounts, respectively. PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates! The NDIC boss who was responding to questions from journalist on the maximum deposit for banks customers to be insured said: What these figures entail is that only less than three per cent of accounts/depositors are not fully covered by the prevailing coverage limits. The Managing director said also that the Corporation’s maximum coverage limits remained the most adequate and robust in the world. Recommended for you "Daddy Falana, Debo is my friend": Actor Lege reacts as Mr Macaroni sues hi... Recommended for you Lady in tears as she bumps into mum reading her WhatsApp chat with boyfrien... Besides, Hassan advocated that the corporation be efficiently empowered to be able to recover assets as expeditiously as possible, so they could pay the depositors Meanwhile, Former Anambra governor Peter Obi has reacted to his alleged invitation by the anti-graft agency, EFCC. Recommended for you "There is no such thing as too old": Nigerian woman in her 40s gets married... Legit.ng reported that the former presidential candidate of the PDP in 2019 said he is yet to receive an invitation letter over the Pandora paper leak. He further promised to honour the invitation of the anti-graft commission once he receives a letter to that effect Source: Legit.ng Nigeria Deposit Insurance Corporation is an independent agency of the Federal Government of Nigeria created to protect depositors and guarantee the settlement of insured funds. The insured limit is currently a maximum of N500,000 for each depositor in respect of deposits held in each insured Deposit Money Bank (including Non-Interest Banks). NDIC however has revealed only 0.6 percent of bank accounts contain the maximum limits of N500,000 Your support matters. Sustain independent journalism in Nigeria – contribute to Legit.ng. Join Legit.ng Telegram channel! Never miss important updates! “The implication of this is that in the event of failure of a bank, above 97per cent of depositors would be fully covered by the Corporation. “We urge the media through this forum to make Nigerian depositors aware that the NDIC’s maximum coverage limits of N500,000.00 per depositor per commercial, merchant and, non-interest bank, primary mortgage bank and mobile money operator, as well as N200,000.00 per depositor per microfinance bank remain the most adequate and robust in the world. “”I need to reiterate that, as it is today, these limits are not only adequate, they are also consistent with the extant provisions and recommendations of the International Association of Deposit Insurers (IADI) in its Core Principle for Effective Deposit Insurance System on the determination of coverage limits. “The IADI Core Principle No. 8 on coverage limits specifically requires that the thresholds should be limited, credible with the capacity to fully cover substantial majority of bank depositors while the rest remain exposed to ensure market discipline. Deposit insurance coverage should also be consistent with the deposit insurance system’s public policy objective. “In addition, the coverage limits are not designed to be static but subject periodic reviews to ensure that they are consistent with the public policy objectives of the Deposit Insurance System. The Corporation successfully reviewed upward the coverage limits from N50,000 at inception in 1989 to N200,000 in 2006 and N500,000 in 2010." “There are a lot of areas that I think the NDIC Act needs to be amended. NDIC, we are liquidators and what happens is that at the point of liquidation, we try to recover the assets, especially the loans and advances that were granted by those banks that are in liquidation. “One of the challenges that we are facing is slow recovery and if the act is to be amended, I think it is important that the corporation is efficiently empowered to be able to recover those assets as expeditiously as possible so they can pay the depositors.”