Established in June 15, 1988, The Nigeria Deposit Insurance Corporation supervises banks so as to protect depositors; foster monetary stability; promote an effective and efficient payment system; and promote competition and innovation in the banking system. The sole purpose of its establishment is to strengthen the safety net of the banking sector, following the recommendation of former Central Bank of Nigeria governor Ola Vincent. The Nigeria Deposit Insurance Corporation, otherwise known as NDIC, provides a safety net for depositors in the newly liberalized banking sector.NDIC, a parastatal under the Nigerian Ministry of Finance protects the banking system from instability occasioned by runs and loss of depositors’ confidence. It operates under the Nigeria Deposit Insurance Corporation Act (1990). The NDIC is a member of the Financial Reporting Council of Nigeria. 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. 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. In December 2007, the NDIC announced that as of January 1, 2008 it would start providing deposit insurance services to microfinance institutions in Nigeria.The Corporation was established to provide a further layer of protection to depositors and complement the role of prudent bank management as well as the Central Bank of Nigeria (CBN) supervisory activities in ensuring a safe and sound banking system.
To protect depositors and contribute to the stability of the financial system through effective supervision of insured institutions, provision of financial/technical assistance to eligible insured institutions, prompt payment of guaranteed sums and orderly resolution of failed insured financial institutions.
To give the right impetus to drive its philosophy and operations, the Corporation adopted a propelling vision for itself “To be the best deposit insurer in the world by 2020”.The NDIC -Nigeria Deposit Insurance Corporation, is an independent agency of the Federal Government of Nigeria. The purpose of the deposit insurance system is to protect depositors and guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay their deposits, thereby helping to maintain financial system stability.The NDIC (Nigeria Deposit Insurance Corporation) is an agency which exists to insure depositors and guarantee the settlement of insured funds should a financial institution be unable to repay their deposits which in turn will stabilize the financial system. In other words, should a Nigerian banking institution fail – the NDIC steps in to make sure that account holders do not lose their deposits. Banks are maintained through a combination of fees such as account fees, ATM fees, Commission Charges (for the investment arm), and application fees. However, apart from fees, banks also make money through investments such as interest on loans. This is where the need for an agency like the NDIC comes in. The loans that are disbursed is the cash that depositors make. The Corporation runs with the core values & beliefs of being effective in the discharge of its mandate, and it is guided by the core values and beliefs of Integrity & Accountability. The Corporation, led by the Board of Directors have exhibited unflinching commitment to doing what is right and just at all times among stakeholders.They have fairly treated stakeholders and others as they would like to be treated.In the Corporation are an array of disciplined staff members who e act with tact and discretion, and responsibility.
One of the Corporation’s core values is the exhibition of Professionalism by its staff members. They strive to exceed targets and deliver excellence in all that we do.Under the leadership of Mrs. Ronke Sokefun, a graduate from the Faculty of Law, Ogun State University (now Olabisi Onabanjo University) who serves as the Chairman of the Board, Teamwork has been a major interest at the Corporation.Suffice to say, Sokefun is armed with wide-ranging experience and industry expertise. She was the Head Management Services of Ocean & Oil Services in 2002 and Head Legal Services of the Oando Group when it was formed in 2004. She rose through the rungs of ladder to the position of Group Chief Legal Officer of the Group in 2007, a position she held until 2011 when she heeded the call of public service.In her capacity as the Chairman, she has continued to boost the organization’s reputation as a critical player in the Nigerian financial sector with collaborative agreements geared towards achieving global industry standards.Mrs. Ronke Sokefun assumed the position of Chairman, NDIC in 2019. Before then, she served as a Commissioner in the Ogun State, where she provided strategic leadership policies between 2012 and 2019.As the then Commissioner of Agriculture and later Commissioner for Urban and Physical Planning, she ensured seamless execution of government policies in her purview. Her participation in governance started in 2011, when she served as the Special Adviser/ Director – General Bureau of Lands & Survey from 2011 to 2012.Her sterling performance in school then, earned her an outstanding award as the best student in Jurisprudence & Legal Theory and Commercial Law. This has shown in her excellent display of leadership qualities where she serves.Before her foray into public service, she gained extensive experience in the private sector rising through the ranks of her profession as a trained lawyer to become a partner at Aluko & Oyebode; a prestigious Nigerian law firm in 2001.Several organizations have benefited from her expertise with a notable mention being the Vmobile (now Airtel) board where she served on the Legal & Regulatory & Finance subcommittee as an alternate director. She is also a member of the Institute of Directors, Nigerian Bar Association and International Bar Association.The Managing Director/CEO of the Agency, Mr. Umaru Ibrahim is confident of the corporation’s performance. He believes the Corporation has contributed to the country’s financial system stability through its legacies.In terms of deposit guarantee, Ibrahim says its key mandate is guaranteed payment of deposits up to a maximum limit in accordance with stipulated statutes in the event of failure of an insured financial institution.This covers all deposit-taking financial institutions licensed by the CBN. They include Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Non-Interest Banks (NIBs) and subscribers of Mobile Money Operators (MMOs). Today, NDIC provides deposit Insurance cover to 27 DMBs, 918 MFBs, 34 PMBs and two NIBs.NDIC has also increased the maximum deposit insurance coverage twice, from ₦50,000 per depositor per DMB at inception, to N200,000 in 2006 and N500,000 in 2010.
