The Managing Director/Chief Executive of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, has clarified that the defunct Savannah Bank still has a license to operate in the country.
Ibrahim said that the bank is not under the NDIC as it has not yet been declared as a liquidated financial entity. Ibrahim, who was represented by Dr Sunday Oluyemi, the corporation’s Director, Communication and Public Affairs, made this known while addressing journalists at the events scheduled to commemorate the 30th anniversary of the NDIC.
This clarification by the NDIC is coming amidst uncertainty by people over the fate of the bank as its license had earlier been revoked by the Central Bank of Nigeria (CBN). However, the institution challenged this revokement and later got its license restored.
Nevertheless, it has been unable to resume banking operations because of its inability to meet the prescribed capital requirements.
On the settlement of over 500,000 failed DMB, MFB depositors, the NDIC said that since its inception 30 years ago, it has refunded over 526, 414 depositors of closed Deposit Money Banks and Microfinance Banks.
About the NDIC: The MD gave a brief rundown as he reviewed the NDIC platform from its inception till date. He made known that the corporation was established in March 1989 following the promulgation of Decree No. 22 of 1988, now replaced with NDIC Act 16 of 2006.
At inception in 1989, the banking system was already in distress with seven technically Insolvent state-owned banks. The experience garnered by the corporation in those early years have proved invaluable. Depending on severity and peculiarity, NDIC in collaboration with the CBN had adopted multiple resolution options to resolve failures in the system.
“In light of the foregoing, it is gratifying that in 30 years since its establishment, the corporation has fulfilled the public policy objectives for which it was established.
“Therefore, the corporation has lined up a series of activities to celebrate its remarkable achievements in the past 30 years as well as give honour to its founders who have left a legacy of excellence in service and commitment to the stability of the financial system,” Ibrahim said.