STRUCTURE AND FUNCTIONS OF NIGERIAN DEPOSIT INSURANCE CORPORATION (NDIC)
The NDIC’s role is to administer the deposit insurance system (DIS) in Nigeria and protect depositors. The Corporation provides incentives for sound risk management in the Nigerian banking system, and promotes as well as contributes to the stability of the financial system. The NDIC manages two deposit insurance funds, the DIF for universal banks and the Special Insured Institutions. Insurance Fund (SIF) for licensed Microfinance Banks (MFBS) and Primary Mortgage Institutions (PMIs).
Functions of NDIC
Section 2 of the Nigeria Deposit Insurance Corporation Act 2006 stipulates the functions for the Corporation as follows:
- Insuring all deposit liabilities of licensed banks: Such other financial institutions (here in after referred to as “insured institutions”) operating in Nigeria within the meaning of Sections 16 and 20 of this Act so as to engender confidence in the Nigerian banking system;
- Giving assistance: To insured institutions in the interest of depositors, in case of imminent or actual financial difficulties of banks particularly where suspension of payments is threatened, and avoiding damage to public confidence in the banking system;
- Guaranteeing payments to depositors; in case of imminent or actual suspension of payments by insured institutions up to the maximum as provided for in section 20 of this Act;
- Assisting monetary authorities: In the formulation and implementation of policies so as to ensure sound banking practice and fair competition among insured institutions in the country; and
- Pursuing any other measures: Necessary to achieve the functions of the Corporation provided such measures and actions are not repugnant to the objects of the Corporation.