The Nigerian Deposit Insurance Corporation on Monday said it had put in place an effective risk-based supervision framework to enable it protect depositors against unethical practices and other infractions in the banking sector.

It also said that an effective distress resolution mechanism had been put in place to protect bank depositors as well as ensure the safety, soundness and stability of the banking system.

The Managing Director, NDIC, Alhaji Umaru Ibrahim, stated these on Tuesday during the corporation’s special day at the 10th Abuja International Trade Fair.

The fair, with the theme, ‘Entrepreneurship as a panacea for economic growth’, was attended by over 200 local and foreign exhibitors.

Ibrahim said the corporation, in line with its mandate, had taken steps to ensure confidence in the banking sector, noting that as of December 2014, a cumulative liquidation dividend of N94.73bn had been paid to 250,592 uninsured depositors of 49 closed Deposit Money Banks.

Within the same period, he said the corporation paid a cumulative sum of N6.83bn as insured deposit to 528,277 depositors of 49 closed DMBs.

Represented by the Deputy Director, Strategy Development Department, NDIC, Mr. Stanley Balogun, Ibrahim said, “The corporation continues to conduct risk-based supervision in collaboration with the Central Bank of Nigeria on the 22 DMBs, 882 microfinance banks and 61 Primary Mortgage Institutions.

“It also carries out other critical investigations in order to send strong signal to bank operators against unethical practices and other infractions prevalent in the banking system.”

He lamented that while the NDIC had been discharging its mandate creditably, the plan of the Federal Government to review its Act so as to ensure its effectiveness could not be achieved before the end of the seventh National Assembly.

The NDIC boss said if the amendment of the Act had scaled through, the corporation would be functioning with greater operational efficiency as a deposit insurer.

In the area of financial, education, Ibrahim said the corporation, in partnership with the CBN, was promoting initiatives that would ensure easy access to banking services.

These initiatives, he noted, would assist in reducing the percentage of adult Nigerians that did not have access to any form of financial services from 46.3 per cent as of 2010 to 20 per cent by 2020.