The Nigeria Deposit Insurance Corporation (NDIC) has listed digital innovations, poor governance, market volatility, economic shocks, inadequate risk management, cybersecurity risk, and the proliferation of Ponzi schemes as key contributors to disruptions in the nation’s financial system.
The Managing Director, NDIC, Bello Hassan, who disclosed this in Lagos at the 2025 NDIC Retreat for House of Representatives Committee on Insurance and Actuarial Matters said that the disruptions in the financial system have the capacity to change the way things are done and always associated with opportunities and challenges.
He said” If the challenges are not addressed in a timely and effective manner, they can erode public and investors’ confidence with the attendant consequences on financial system stability.”
To deal with the challenges associated with financial disruption effectively, he said banks need a multifaceted strategy that blends resilience, innovation, and culture of compliance with regulations.
He said the liquidation of defunct Heritage Bank last year following the revocation of its banking license by the Central Bank of Nigeria, NDIC will commence the payment of the first tranche liquidation dividend of 9.2 kobo per naira, to uninsured depositors of the defunct bank before the end of April 2025.
He said the Corporation has re-strategized on aggressive debt recovery, to ensure that it recover outstanding debts owed to th(e defunct bank, to pay the balance of un-insured depositors and other claimants, in the order of priority, as provided in Section 72 of the NDIC Act of 2023.
Hassan stated that NDIC recognises that consumer protection and the preservation of public confidence in the financial system are not only critical to our mandates, but also the foundation to the continued resilience and credibility of the Nigerian banking sector.
He however said that the growing incidence of Ponzi schemes and so-called “wonder banks” as witnessed by the recent crash of the CBEX pyramid scheme, which resulted in an estimated loss of N1.3 trillion have implications for public confidence in the financial system.
He said the Corporation remained committed to protecting the public from such fraudulent schemes by implementing comprehensive public awareness campaigns, that educate people about the risk of engaging with unlicensed financial institutions.