The Managing Director/Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has revealed that about 1.02 per cent control about 74 per cent of the value of deposits.
He further disclosed that only 25 per cent of the value of customers’ deposits are insured by the corporation.
Hassan said this in an address to the 2024 Sensitisation Seminar for justices of the Court of Appeal in Lagos, with the theme: ‘Building Strong Depositors Confidence in Banks and Other Financial Institutions through Adjudication’.
He noted that although the number of depositors covered by the agency is about 98 per cent, which is depositors with five million (naira) and below, in terms of value, it only covers 25 per cent, which means about 75 per cent of deposit value is not covered.
The managing director pointed out that the uncovered deposits would eliminate the risk of moral hazard that may arise.
“We believe that the quantum of deposits not covered will enable them (banks) to exercise market discipline and eliminate the issue of moral hazards,” he stated.
“The value of depositors within the system is highly skewed,” Hassan added.
He described the judiciary as a critical stakeholder and called for improved synergy among stakeholders.
Addressing concerns about the recent hike in deposit insurance coverage for banks, Hassan said, it was with the purview of the agency to carry out such reviews periodically.
