BENIN CITY – The Benin Zonal Controller of the Nigeria Deposit Insurance Corporation (NDIC) MR. Sunday Ade Oluyemi said the strategic nature of the banking system informed the establishment of various institutions to foster stability in the system.
He said the NDIC which was established through Decree 22 of 1988 and commenced operation in March 1989, was one of such institutions.
Mr. Oluyemi said the NDIC was established to take away the fears associated with deposits in the bank.
The Benin Zonal Controller said this during a sensitization lecture of Batch ‘A’ 2015 National Youth Service Corps (NYSC) members presently going through orientation at the NYSC Orientation camp in Okada, Ovia North East Local Government Area of Edo State.
Speaking on the topic: “Deposite Insurance System in Nigeria, Mr. Oluyemi said one paramount issue in banking is security.
He said all licensed deposit taking financial/institution in Nigeria is insured by the NDIC.
According to him, the essence of deposits insurance is to reimburse the customers in case the insured institution closes and cannot give the money they had taken from their customers.
On identifying institutions insured by the NDIC, Mr. Oluyemi said there is always NDIC logo displayed at the entrance of the bank branches/offices.
He asked the corps members to always watch out for the logo and cautioned that they should never disclose their bank detail to any body.
Mr. Oluyemi said a bank can fail when it cannot make the customers’ money available to them.
“It is because of bank failure that deposit insurance (DIS) came into existence.
DIS according to him is a financial guarantee to protects depositors in the event of bank failure and also to offer a measure of safety for the banking system.