Nigeria Deposit Insurance Corporation (NDIC): Brief History, Functions And Salary Structures

The Nigeria Deposit Insurance Corporation (NDIC) came into being in 1983 when a committee was set up by the Board of Central Bank of Nigeria (CBN) to critically look into the operations of the banking system in Nigeria.

The Committee in its report, recommended the establishment of a Depositors Protection Fund which on implementation, gave birth to the Nigeria Deposit Insurance Corporation (NDIC).

In this post, we shall take a look at NDIC’s brief history, functions, its core values and beliefs and the achievements since its inception and salary structures.

Nigeria Deposit Insurance Corporation is therefore an independent agency of the Federal Government of Nigeria, charged with the responsibility of the deposit insurance system to protect depositors and guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay their deposits, thereby helping to maintain financial system stability.

The Nigeria Deposit Insurance Corporation (NDIC) was established on June 15, 1988, following the promulgation of Decree No. 22 of 1988, now replaced by the NDIC Act 2006, to strengthen the safety and stability of the country’s financial system.

In other words, NDIC protects or guarantees the payment of deposits up to the maximum limit in line with its statue in the event of failure of an insured financial institution.

Its Mission or Functions include:

Mandates and Powers: The Deposit Insurance Scheme (DIS) being implemented by the NDIC was designed as a “Risk Minimiser”, with the following mandates or functions:

Deposit Guarantee: This function appears the most significant and distinct activity of the Corporation. As an insurer, NDIC guarantees the payment of deposits up to the maximum limit in accordance with its statue in the event of failure of an insured financial institution.

Banking Supervision: The Corporation supervises banks so as to protect depositors; foster monetary stability; promote an effective and efficient payment system; and promote competition and innovation in the banking system.

Banking supervision is an essential element of the Nigeria deposit insurance scheme as it seeks to reduce the potential risk of failure and ensures the unsafe and unsound banking practices do not go unchecked.

Failure Resolution: One of the primary roles of the NDIC is to ensure that failing and failed institutions are resolved in a timely and efficient manner.

Bank Liquidation: The bank liquidation option is always adopted by the corporation for banks that fail to respond to failure resolution measures. Liquidation process involves orderly and efficient closure of the failed institutions with minimum disruption to the banking system, cost-effective realisation of assets and settlement of claims to depositors, creditors and where possible, shareholders.

Policy Formulation and Implementation: It is also the duty of NDIC to assist monetary authorities in the formulation and implementation of policies so as to ensure sound banking practice and fair competition among insured institutions in the country.

This goes a long way to ensure that decisions made in the banking sector are properly guided and are in the best interest of the sector.

To Ensure Confidence in the Nigerian Banking System: NDIC also helps to ensure all deposit liabilities of licensed banks and other financial institutions operating in Nigeria within the meaning of Sections 16 and 20 of this Act ensure confidence in the banking system of Nigeria. This is done to protect the customers and also assure them of quality service delivery.

Finally, the Nigeria Deposit Insurance Corporation is to assist the federal government of Nigeria with good policy making in the insurance sector. These policies are geared towards smooth running of the insurance sector of the economy.

To achieve these laudable set goals, NDIC is guarded by core values and beliefs by employing:

• Honesty
• Respect and Fairness
• Discipline
• Professionalism
• Team Work
• Passion

Salary Structures for NDIC Staff

NDIC staff are well paid, though there is no information of the actual salary structures of Nigeria Deposit Insurance Company. However, we can provide some general information about the typical salary structure in Nigeria and the factors that may influence the salary levels in NDIC.

In Nigeria, the salary structure of most organizations is based on the Consolidated Salary Structure (CONSS) as implemented by the government. The CONSS consists of different salary levels, with each level having a specific minimum and maximum amount.

No doubt, the salary level of an employee in NDIC may depend on several factors such as their job title, years of experience, level of education, and performance.

In addition, NDIC offers various benefits to its employees, including health insurance, pensions, bonuses, and other incentives.

It’s worth noting that the Nigerian government periodically reviews and adjusts the salary structure, so it’s possible that the salary levels in NDIC may change over time.

In summary, we can rightly say that since the inception of the Nigeria Deposit Insurance Corporation (NDIC), the Corporation has done remarkably well, through its various units which have been very instrumental to the country’s economy in line with its mandate.

Such strides are commendable and of great value to nation-building by protecting depositors and contributing to the stability of the financial system through effective supervision of insured institutions, provision of financial and technical assistance to insured institutions, prompt payment of guaranteed sums and orderly resolution of failed insured financial institutions.

So, job seekers in the categories of graduates who want to make a career in NDIC should see the information provided here very useful.