No plan to liquidate insurance companies – NDIC

The Nigeria Deposit Insurance Corporation, NDIC has denied claims that it is seeking powers to liquidate insurance companies and (or) terminate the insurance firms’ licences.
It explained that as a deposit insurer and liquidator of insured deposit taking financial institutions, the liquidation of insurance companies does not fall under the purview of the Corporation.
This is contained in a statement issued in Abuja on Saturday by Head of Communication and Public Affairs of the Corporation, Mr. Hadi Birchi, and made available to the Nigerian Pilot newspaper
The statement said “As a deposit insurer and liquidator of insured deposit taking financial institutions, the liquidation of insurance companies does not fall under the purview of the corporation.”
The corporation made it clear that its proposed amendment Bill before the National assembly does not seek the powers to liquidate insurance companies or terminate their firms’ licenses.
NDIC was established in 1989 through the NDIC Act of 1988 with powers among others to supervise insured institutions.
It was also empowered to resolve bank distress conditions and to act as liquidator of closed insured financial institutions whose licenses had been revoked.
The statement pointed out that the proposed amendments are therefore to enable the Corporation discharge its mandates effectively and efficiently.
Accordingly, it stressed that some of the amendments and or new provisions being proposed are: “Prompt payment of insured deposits following failure of an insured institution by reducing time of reimbursement (payment to depositors) from 90 days to 60 days.
“Powers to deal with parties at fault i.e. Directors and officers who caused the failure of an insured institution; Power to reimburse insured depositors notwithstanding pending court suits; Prevention of execution of judgement against the assets of the Corporation (as body corporate) for a liability of a failed insured institution.
“Limitation of court orders aimed at preventing the Corporation from carrying out its statutory functions of deposit protection; Enhancing corporate governance practices in the Corporation; Increase funding for the Corporation to be able to carry out its core mandate of depositor protection; and To enhance debt recovery efforts by the Corporation.”