Nigeria Deposit Insurance Corporation (NDIC), has strengthened its partnership with the judiciary aimed at enhancing the prosecution of failed banks, according to Bello Hassan, managing director of the corporation.

Hassan stated this at the ongoing 19th Abuja International Trade Fair with the theme: “Mobility: Options for Transport, Trade Finance, and Taxation,” in Abuja.

He said the NDIC’s swift response in the case exemplifies its critical role in maintaining financial stability and protecting depositors from the impacts of bank failures.

NDIC also reaffirmed its dedication to safeguarding the deposits of Nigerians, especially to the recent closure of Heritage Bank.

Hassan explained that the initiative has allowed the NDIC to successfully compensate 84.98% of depositors with linked accounts, ensuring that insured amounts of up to N5 million were credited without requiring physical visits to NDIC offices.

He said: “The importance of deposit insurance cannot be overstated in a financial system where confidence is essential. It acts as a safety net that reassures depositors, builds trust in the banking system, and helps to prevent bank runs during periods of uncertainty.

“Over the years, the NDIC has been instrumental in promoting stability by ensuring that when banks fail, depositors are promptly compensated.

“The recent closure of Heritage Bank, following the Central Bank of Nigeria’s revocation of its operating licence on June 3, 2024, underscores the crucial role of the NDIC in protecting depositors. In line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the NDIC was appointed liquidator to oversee the resolution of the bank and the payment of its depositors.

“In an unprecedented achievement, the NDIC commenced payments to depositors within four days of Heritage Bank’s closure. By leveraging depositors’ Bank Verification Numbers (BVN) as a unique identifier, the Corporation was able to identify alternate accounts and credit the insured amounts of up to N5 million directly, without the need for forms or physical visits to NDIC offices. This innovative approach has enabled the payment of 84.98% of depositors with BVN linked accounts to date.

“This prompt response, alongside the recent increase in deposit insurance coverage from N500,000 to N5 million, has significantly mitigated the impact of the bank’s failure on depositors.

“Significant progress has been made in protecting depositors’ funds, with the recent increase in maximum deposit insurance coverage providing enhanced protection across various financial institutions.

“This increase ensures that 98.98 per cent of total depositors in Deposit Money Banks (DMBs), 99.27 per cent in Microfinance Banks (MFBs), 99.34 per cent in Primary Mortgage Banks (PMBs), and 99.99 per cent  in Payment Service Banks (PSBs) are covered. reinforcing NDIC’s commitment to fulfilling its mandate.

“While our immediate focus remains on insured deposits, the NDIC is also committed to ensuring that depositors with balances exceeding N5 million are compensated. These larger, uninsured deposits, represent a significant portion of the total deposits in Heritage Bank.

“The Corporation has already initiated the process of realising the bank’s assets and recovering debts to ensure the timely payment of the uninsured depositors through liquidation dividends.”

Hassan also urged depositors affected by bank closures to stay informed and submit their claims through official NDIC channels, reinforcing the corporation’s commitment to ensuring that all depositors receive the protections they deserve.

The NDIC’s renewed focus on collaboration with judicial authorities marks a significant step towards enhancing regulatory oversight and promoting a more resilient banking environment in Nigeria.

Taiwo Oyedele, chairman of the Presidential Taskforce on Fiscal Policy and Tax Reforms Committee, on Tuesday disclosed that the Withholding Tax Regulations 2024 has been gazetted.

Taiwo Oyedele, chairman of the Presidential Taskforce on Fiscal Policy and Tax Reforms Committee,

Disclosing this on Channels Television’s Independence Day special event which was tagged, “Nigeria’s Challenging Economy: Strategies For Recovery”, Oyedele said the gazetted regulation will be published on Wednesday.

“We have seen some of the processes within government are very slow, the bureaucracy can be better. So, one of the positives is that by going through this process of trying to do a holistic fiscal reform, we have also identified those areas where we can make things easier such that next time when there is an approval by the government almost immediately you can feel the impact.

“I do have some good news, the good news is that the withholding tax regulation has now been gazetted. So, the only reason it hasn’t been published today is because it is public holiday, so first thing tomorrow you will see a copy of the gazette and that provides a lot of relief not just for manufacturers but also every other business in terms of taking away some of the burdens of funding their working capital,” Oyedele said.

The Deduction of Tax at Source (Withholding) Regulations 2024 was announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on July 1, 2024 as part of President Bola Tinubu’s economic reforms.

Withholding tax is a tax collection mechanism that serves as an advance payment of income tax. It is deducted at source directly from payments for required transactions.

Speaking further, Oyedele emphasised how his committee is working to improve the ease of doing business in Nigerian, saying that it is one of the three pillars of the work of his committee.

“Essentially when you are talking about ease of doing business, it is one of the three pillars of the work of my committee along with so many Nigerians who are members of that committee, putting in everything that they can without asking for anything in return because they love their country and that gives us hope.”

The tax committee chairman also disclosed that the Economic Stabilization Bill which his committee has been working on for some months has been approved by the Federal Executive Council.

He said the bill will go to the National Assembly in a couple of days where it is expected to be passed into law.

PalmPay, one of Nigeria digital banks processes over 300 million volume of transactions every month worth N6trillion.

Chika Nwosu, managing direction, PalmPay stated this at the 5^th anniversary event of the Fintech company held on Monday in Lagos.

Chika Nwosu, managing direction, PalmPay

He said that, the past 5 years have been about problem solving, innovative thinking and enabling Nigerians for a digital economy. “We have grown immensely as an organization by launching diverse range of financial products making payments solutions more accessible and reliable.

“We are bigger, stronger and better in every way having been recognized as one of the world top 250 Fintech companies in 2024 by CNBC and Statista’.

“We have established ourselves as a top player in Nigeria Fintech space. Our impact is tangible with products like money transfer, e-payment, credit services and saving. PalmPay contribution to financial inclusion is very significant, as the country achieved 74 percent inclusion rate as at last year and we are just getting started,” he said.

He noted that the recently launched USSD service *861# is an innovative solution designed to bring financial services to Nigerians without smartphones. “This innovation is driven by our understanding of local needs and our commitment to delivering real solutions.

“Looking ahead of us in the next 5 years of our operation, will be about sterling innovations and deepening our impact, we are not just looking at adding zeros to our user base but bringing financial empowerment to every nooks and crane of Nigeria. We want to continue to prioritize security, innovation and user experience, enhancing our anti-fraud features in collaborating closely with regulators.

“As we want to deepen financial inclusion in Nigeria, we want to reach especially the last mile, – the people who don’t use smartphones. This is actually our major target going forward.

“For us in PalmPay our major objective is to use technology to support financial inclusion not just in Nigeria but in other African countries. We are promising our customer that we will give them the best of service and so, they should stick with us, ” he added.