NDIC Commends CBN’s Banks Recapitalization Policy Amid Economic Resilience Drive

The Nigeria Deposit Insurance Corporation (NDIC) has hailed the Central Bank of Nigeria (CBN) for its proactive step towards recapitalizing banks as a measure to bolster economic resilience within the country.

Speaking at the 35th Enugu International Trade Fair’s NDIC Special Day, Managing Director, Bello Hassan, praised the CBN’s commitment to ensuring the stability of the Nigerian banking sector amidst global economic shifts.

Hassan emphasized the necessity of collaboration between NDIC and the apex bank to ensure a smooth transition while prioritizing the protection of depositors’ interests.

He highlighted the CBN’s recent move to revise and raise minimum capital requirements for banks, citing it as a significant stride towards fortifying the banking system.

Commercial banks are now mandated to maintain minimum capital levels ranging from N500 billion to N10 billion, depending on their classification.

The managing director underscored the strategic importance of this recapitalization initiative, aligning it with President Bola Tinubu’s vision to elevate Nigeria’s economy to the ranks of $1 trillion base economies.

Hassan emphasized that aside from strengthening the banking system, this move would also enhance the sector’s ability to withstand financial shocks.

Furthermore, Hassan lauded NDIC’s efficient disbursement of insured sums to verified depositors of closed microfinance banks and primary mortgage banks since the CBN revoked the licences of 179 microfinance banks and four primary mortgage banks in 2023.

He reassured depositors that those with amounts exceeding the insured limit would receive liquidation dividends, once debts were recovered and assets of the closed banks were disposed of, ensuring a fair resolution process.