Senate Confirms Keyamo, Others Member Of NDIC Board

The Nigerian Senate,Wednesday, confirmed the Director of Media of President Muhammdu Buhari Campaign Organisation, Festus Keyamo, alongside others as members of Nigerian Deposit Insurance Corporation (NDIC).

The board will be headed by Ronke Sokefun and Other new members which includes: Adewale Adeleke, Mustapha Adewale Mudashiru, Josef O. J. Okoloagu and Alhaji Garba Bello.

The appointment of new board members came eight months after the Senate received a request from the President for confirmation of seven-member Governing Board of Nigerian Deposit Insurance Corporation(NDIC).

On May 8, the Senate president, Bukola Saraki, read the letter conveying the request, dated March 27, 2018, signed by Buhari.

“In compliance with Section 5(4) of the Nigerian Deposit Insurance Corporation Act, 2006, it is my pleasure to forward the underlisted nominees for confirmation as Chairman and members of the Board of the Nigerian Deposit Insurance Corporation,” the letter read.

[easy-social-share buttons="facebook,twitter" counters=0 style="button"]

NDIC Pays N11.50bn To Insured Failed Banks Depositors, Recovers N28bn Debt

The Managing Director and Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, yesterday said N11.50 billion had been paid to depositors, creditors, shareholders and other stakeholders of closed financial institutions as at December 31, 2017.

He also said N368.43 million was recovered by the corporation from debtors of failed banks during the period under review- bringing total recoveries to N28.84 billion to date.
The NDIC boss further noted that N21.85 billion had so far been realised from sale of physical assets of closed banks as at 2017.

He also said depositors of 16 deposit money banks (DMBs) in-liquidation have so far been fully paid all the deposit balances they had in their accounts at the closure of the financial institutions as at 2017.

Speaking during the NDIC Special Day at the ongoing 13th Abuja International Trade Fair, Ibrahim further announced the successful conclusion of the adoption of bridge bank as a failure resolution option in 2011 by the corporation to address problems of the then three failing banks.

Represented by NDIC’s Director, Enterprise Risk Management Department, Mr. Peter Nggada, the NDIC boss noted that Keystone Bank Limited, the last of the three bridge banks to be sold, had been acquired by Sigma Golf River Bank Consortium on March 23, 2017, following the divestment of the Asset Management Company of Nigeria (AMCON).

The bridge bank transaction also had the then Mainstreet Bank Plc acquired by the defunct Skye Bank Plc, while Heritage Bank Plc had bought over Enterprise Bank.

He said in a bid to ensure financial system stability in the country, NDIC in partnership with the Central Bank of Nigeria (CBN) had conducted on-site and off-site supervision of 25 DMBs, one non-interest bank, 1008 microfinance banks (MFBs) and 38 primary mortgage banks (PMBs) using the Risk Based Examination of three banks with holding companies.

He added that as a risk minimiser, the corporation in collaboration of the CBN exists to protect depositors’ funds through effective supervision of banks as well as timely resolution of distressed financial institutions “like we saw in the case of the defunct Skye Bank and the establishment of Polaris Bank to assume its assets and liabilities.”

He pointed out however, “When various resolution measures fail, the corporation could, as the last option, liquidate the failed banks and ensure the prompt payment of all insured deposits.”

[easy-social-share buttons="facebook,twitter" counters=0 style="button"]

Polaris Bank Takes Over Skye Bank

Following the withdrawal of operating license of Skye Bank Plc by the apex Central Bank of Nigeria, the Managing Director of the Nigeria Insurance Deposit Corporation (NDIC), Godwin Emefiele, has changed name of Skye Bank to Polaris Bank.

Emefiele, at a press briefing in Abuja on Friday, said an injection of N786 billion has been made into the bank with the Asset Management Corporation of Nigeria (AMCON) has been directed to commence the sale process of the bank from Monday.

The revocation of Skye Bank’s operating license follows the Central bank’s decision to pause its injection of funds processes in the lender.

The regulators maintain that customers deposits safe as management and members of staff will be retained under the new ownership structure.

Meanwhile, the share price of Skye Bank on Friday gained 4.05 percent at 77 kobo.

The stock is expected to be placed on suspension from Monday in accordance with bridge bank procedures.

 

[easy-social-share buttons="facebook,twitter" counters=0 style="button"]

NDIC To Investigate Banks Over Alleged Fraud Cases

The Nigeria Deposit Insurance Corporation (NDIC) is to investigate some banks for the inadequate rendition of returns to the Corporation on instances of fraud, forgeries, and cases involving members of their staff on grounds of fraudulent activities.

Section 35 and 36 of the NDIC Act No. 16 of 2006 (as amended) requires all Deposit Money Banks (DMBs) to submit monthly information/returns on fraud and forgeries to the Corporation.

The NDIC made the decision in the light of the most recent report from its Off-Site Supervision of the DMBs which revealed the number of fraud cases attributed to internal abuse by staff of banks increased from 231 in 2016, to 320 in 2017, or 38.53% above the figure reported for the previous year.

The report relied on a total of 286 responses received from 26 banks during the period. There were 22 NIL monthly responses from the banks as at year ended 31st December, 2017.

The 286 responses received from banks in 2017 cited 26,182 cases of fraud and forgeries which is 56.30% higher compared to 16,751 cases reported in 2016.

Similarly, the amount involved in the fraudulent activities documented increased by ?3.33 billion from the ?8.68 billion reported in 2016 to ?12.01 billion in 2017 or 38%.

However, the Expected/Actual loss slightly-decreased by ?24.42 million or 1.03% from ?2.39 billion in 2016 to ?2.37 billion in 2017.

Internet/Online-banking and ATM/Card-related fraud-types reported constituted 24,266 or 92.68% of all the reported cases, resulting in ?1.51 billion or 63.66% of losses in the Industry in 2017.

The report also documented other miscellaneous crimes such as fraudulent transfers/withdrawals, cash suppression, unauthorized credits, fraudulent conversion of cheques, diversion of customer deposits, diversion of bank charges, presentation of forged or stolen-cheques among others.

The 22 Licensed Commercial Banks and 4 Merchant banks rendered 286 Returns on Dismissed/Terminated staff as a result of fraud and forgeries during the year under review.

Out of the 26,182 fraud cases reported by the 26 Licensed Banks, 320 cases were attributable to internal collaboration by bank staff.

A total of 320 bank employees had their appointments either terminated or were summarily dismissed in 2017, as against 231 in 2016.

That represented an increase of 38.53% in the total number of fraud cases reported in 2017. However, the losses arising from the reported cases decreased from ?760 million in 2016 to ?682 million or about 11.43% in 2017.

The Corporation attributes the improvement to additional internal control measures adopted by the banks in the wake of the proactive corrective measures taken to ensure their compliance with good corporate governance principles.

[easy-social-share buttons="facebook,twitter" counters=0 style="button"]