The Nigeria Deposit Insurance Corporation has said the deposits of directors and staff of defunct banks are excluded from its Deposit Insurance Scheme.

This was disclosed during the Financial Literacy Day Programme organized by the NDIC on Monday in Abuja

While discussing the mandate and the operations of the corporation, the Manager, Communications and Public Unit of the agency, Tanko Yahaya, noted that the DIS does not cover insider deposits, among others.

He said, “As a deposit insurer, NDIC guarantees the payment of deposits up to the maximum limit in accordance with its law in the event of failure of an insured financial institution (bank).

“Currently, the DIS in Nigeria covers all deposit-taking financial institutions licensed by the CBN, which include DMBs, NIBs, MFBs, PMBs, PSBs & MMOs.

“All types of deposits are covered except for Insider deposits, Interbank placements (Exempted in 2007), and deposits held as collateral for loans. And such other deposits as may be specified from time to time by the Board of NDIC.”

Speaking more on the insider deposits, Yahaya said, “There are deposits that are not covered by the NDIC. One of them is insider deposit. If a bank folds up, why should we pay the directors of the banks? Are they not the ones that fold up the bank?”

In his presentation, he also disclosed that as of June 30, 2022, there were 33 Deposit Money Banks, 882 Microfinance Banks, 34 Primary Mortgage Banks and three Payment Service Banks, as well as 29 Mobile Money Operators.

He added that from 1994 to June 30, 2022, NDIC liquidation activities covered closed 467 banks, which include 49 DMBs, 367 MFBs, and 51 PMBs.

Earlier, the Managing Director/Chief Executive of the NDIC, Mr Bello Hassan, disclosed that the corporation had started the process for the sales of assets of defunct banks whose licences were revoked by the Central Bank of Nigeria.