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‘NDIC never enjoyed government subventions’

By Anthony Otaru, Abuja
16 November 2016   |   2:20 am
“In fact, the Corporation has been remitting billions of Naira of its annual operating surpluses to the Federal Government as required by the Fiscal Responsibility Act.”
NDIC

NDIC

The Head, Corporate Affairs of the Nigerian Deposit Insurance Corporation —NDIC, Alhaji Hardi Birchi, on Monday, disclosed that the Corporation has never enjoyed any government subventions from government directly or indirectly, contrary to the claims by a former Director-General of the Nigerian Stock Exchange (NSE), Prof Ndi Okere-Onyuike.

In his words, ‘’It should be noted that contrary to Mrs. Okereke-Onyuike’s assertion, the NDIC does not enjoy any government subventions, its income is derived from investment of insurance premium paid by the insured banks.

“In fact, the Corporation has been remitting billions of Naira of its annual operating surpluses to the Federal Government as required by the Fiscal Responsibility Act.”

Birchi, in a statement further noted that the NDIC’s mandate and scope of operations are far beyond such narrow scope as was ignorantly painted by Okereke-Onyuike, hence the call for the merger of the NDIC and AMCON is misplaced and totally uncalled for.

He noted that it is also on record that the Corporation in collaboration with the Central Bank of Nigeria (CBN) in 2009, midwifed the establishment of the Asset Management Corporation of Nigeria (AMCON).

He said the Corporation was purposely set up to purchase toxic assets from the banking institutions and engage in debt recovery of such non-performing loans. The mandate of AMCON is quite different from that of the NDIC, it sits on the Board of AMCON and contributes its technical knowledge , expertise and experience in distress resolutions.

Birchi, therefore, called on the public to disregard the call by Okere-Onyuike for the merger of NDIC and AMCON together with the claims that they are performing the same functions.

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