The Nigeria Deposit Insurance Corporation (NDIC) has initiated the process of realising the assets and recovering debts from defunct banks to activate payment of uninsured depositors through liquidation dividends.

Additionally, the corporation assured compensation for depositors of defunct banks whose balances exceed N5 million.

NDIC Managing Director, Mr Bello Hassan, stated this on Wednesday at the 45th Kano International Trade Fair holding in the state.

Hassan explained that NDIC’s responsibilities also extend to the creditors of the failed banks, who he said will receive their money once all depositors have been reimbursed.

He said that the orderly process of reimbursement is based on asset realisation and prioritisation of claims, which is essential in maintaining public confidence in the financial system and promoting stability.

Hassan, represented by Acting Director of Corporate Communication and Public Affairs, Hajia Hauwa Gambo, emphasised the role of NDIC in promoting the stability of financial institutions, referencing the intervention of the corporation for depositors of Heritage Bank.

The MD narrated how the corporation safeguarded the deposits of depositors of Heritage Bank by crediting the depositors’ accounts through an alternative account, using the Bank Verification Number (BVN).

The NDIC boss stressed the critical role of the corporation in ensuring a stable financial environment that guarantees deposits and depositors’ confidence, as well as building public trust.

He also lauded the dedication of the leadership of the Kano Chamber of Commerce, Mines, Industries and Agriculture (KACCIMA) in driving innovation and economic development through the annual trade fair.

He said, “NDIC has been a key player in protecting depositors, especially the most vulnerable, and strengthening the financial system. Our core mandate includes providing deposit insurance to depositors of licensed banks, supervising insured financial institutions, managing distressed banks, and ensuring the orderly resolution of banks in the event of failure.

“We are committed to safeguarding Nigerians’ bank deposits from the devastating impact of bank failures. In collaboration with the Central Bank of Nigeria (CBN), we work tirelessly to ensure the stability of the banking sector, maintain compliance with banking regulations, and ensure effective oversight of insured deposit-taking financial institutions.”

Earlier, Vice President of Establishment, KACCIMA, Sani Husseini Saleh, applauded NDIC’s contribution to public enlightenment, taking advantage of the annual fair.

Saleh said the theme of the 45th fair, “Connecting Businesses, Creating Value,” highlights the importance of fostering growth by empowering businesses to innovate, collaborate, and drive wealth creation. He stated that the theme was intended to promote economic growth in the state.