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NDIC Earmarks N258.76bn Insurance Cover for Bank Depositors

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  • NDIC Earmarks N258.76bn Insurance Cover for Bank Depositors

The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, Thursday disclosed that the sum of N258.767 billion had been earmarked in its 2019 fiscal year for reimbursement of depositors in the unlikely event of closure of licenced banks.

Addressing the House of Representatives Committee on Insurance and Actuarial Matters when he appeared before it to defend the corporation’s 2019 budget estimates, he said the provision included N109.686 billion for depositors of Deposit Money Banks (DMBs), while N149.081 billion has been set aside for depositors of Primary Mortgage Banks (PMBs) and Micro Finance Banks (MFBs).

The NDIC boss noted that its proposals were consistent with the corporation’s mandate of providing financial guarantee to depositors of failed banks towards promoting public confidence in the banking sector.

This, according to him, was critical to the sustenance of the stability of the entire financial system.

Head, Communication and Public Affairs, NDIC, Mr. Mohammed Kudu Ibrahim, the MD further disclosed that a total of N140 billion was provided for DMBs while the sum of N300 million was set aside for microfinance and PMBs with respect to the issue of NDIC’s mandate of providing financial assistance to eligible licenced and insured banks.

He, therefore, urged the banks to take the opportunity to access the funds offered by the corporation whenever they are required.

The NDIC boss also explained that in fulfillment of the corporation’s mandate to provide technical assistance to licenced banks, the NDIC in collaboration with the Central Bank of Nigeria (CBN), had invested in the acquisition of a new software called the Integrated Regulatory Solution (IRS) for a more robust surveillance and supervision of insured financial institutions in the country.

According to Ibrahim, the software would enable DMBs generate real time online data among themselves and help regulators to access data online from the DMBs.

He further disclosed that the National Association of Microfinance Banks Unified Information Technology Platform (NAMBUIT) was introduced by CBN/NDIC and Association of MFBs to enhance the operational capacity of the MFBs.

He said the CBN and NDIC are financing the project in the ratio of 60/40 per cent respectively in view of the importance of the project to the growth of the MFB sub-sector.

Nonetheless, the Committee Chairman, Hon. Olufemi Fakeye, in his remarks, said the corporation has carved a niche for itself as the leading deposit insurer in Africa.

He made particular reference to the role played by the NDIC in the resolution of the defunct Skye Bank and the establishment of Polaris Bank Limited as a bridge bank and charged the corporation to be more pro-active in detecting and addressing distress in banks as a way of sustaining public confidence in the system.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Julius Berger Diversifies into Agro-processing

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Julius Berger Steps into Agro-processing to Seize Diversification Opportunity

Julius Berger, a leading construction company in Nigeria, said its board of directors has approved a diversification opportunity for the firm in agro-processing.

The approval was done at a meeting held on September 22, the company stated in a statement filed with the Nigerian Stock Exchange on Thursday.

Julius Berger said the approval would help the company capitalised on diversification opportunities in the agro-processing industry, especially with the emerging developments in Nigeria and government ongoing reforms to make the nation self-sufficient.

The statement read in part: “We would advise the exchange and the capital market that the Board of Julius Berger at its meeting held on September 22, 2020 approved a diversification opportunity for the company in agro-processing.

“The Board of Directors and the executive management of Julius Berger strongly believes that this diversification direction would support the continued success of the group in the future and align with the strategic objective of the government to stimulate value creation in Nigeria.

However, Julius Berger reiterated its commitment to maintaining and strengthening its leadership in the nation’s construction sector.

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Some Nigerians Are Charging Ship Owners Illegal $36,000 Per Month for Secure Anchorage

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Ship Owners Are Paying Illegal $36,000 Per Month for Secure Anchorage in Nigeria

Mr. Rotimi Amaechi, the Minister of Transportation, on Thursday said certain people are charging ship owners illegal $1,200 per day for secure anchorage in Nigeria.

The minister registered his displeasure with continuous patronage of illegal harbours known within the circle as secure anchorage areas.

Amaechi, who spoke at the ‘2020 World Maritime Day Celebration which held at Eko Hotel and Suites in Lagos’ said the issue was unsettling.

He said, “There is a crisis in the maritime sector. The crisis is on the issue of security.

“Today, we have a single individual partnering with the military that is collecting $1,200 to the detriment of shipping companies.

“That one individual is still managing the business with support of other institutions.”

The minister also accused stakeholders of doing nothing to these individuals, saying only the government had the right to step up secure anchorage area

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174,574 Persons Apply For COVID-19 Support Fund Within 48 Hours

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Survival Fund: 174,574 Persons Apply For COVID-19 MSME Support

More Micro Small and Medium Enterprises (MSME) has applied for Federal Government financial support under the Nigeria Economic Sustainability Plan.

According to the agency in charge of the program, within 48 hours of opening the registration portal of N75 billion National Survival Fund, a total of 174,574 applications were successfully registered for both the Guaranteed Off-take Stimulus and Survival Fund schemes.

The schemes were instituted to support businesses and individuals negatively impacted by the COVID-19 pandemic.

Mariam Katagum, Minister of State for Industry, Trade and Investment, on Thursday in Abuja said as at “8.30am this (Thursday) morning, total successful registrations stood at 174,574.”

She further stated that “the following states have the highest applications as follows, Kano, 19,895; Kaduna, 13,575; Lagos, 13,640; Katsina: 8,383; Federal Capital Territory, 8,085.

Katagum said about 138,000 applications were registered within the first 24 hours of opening the portal, these applicants created profiles and completed the first stage of registration with Kano, Kaduna and Lagos emerging as lead states.

She explained that all successful applicants were sent SMS and email verification with a list of requirements for the second stage of application which would commence on October 1, 2020.

Applicants will be required to upload details supporting their applications which will be verified and if successful, approved for disbursements,” the minister stated.

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