By Babajide Komolafe

Nigeria Deposit Insurance Corporation yesterday said that it didn’t collect subvention from the Federal Government but rather remitted part of its surplus into the consolidated revenue fund.

The corporation stated this in a press statement issued yesterday in response to allegations by a former Director-General, Nigeria Stock Exchange (NSE), that the corporation collects subvention from the Federal Government.

The Corporation stated: “Our attention has been drawn to remarks credited to erstwhile DG, NSE, Dr. Ndidi Okereke-Onyuike, which was published in many newspapers on November 10, 2016.

“In her speech delivered during a book launch in Lagos,Dr. Okereke-Onwyuike called on the Federal Government to merge the NDIC with Asset Management Corporation of Nigeria, AMCON as their mandates were similar. She further alleged that NDIC relied on government subvention for its operational activities but lacked the capacity and efficiency to execute its mandate.

“The unfortunate remarks were a glaring indication that the Ex-DG NSE clearly lacked adequate understanding of the roles of the NDIC in the Nigerian financial system, which had been widely acknowledged over the last 27 years.

“The NDIC was established in 1988 and commenced operations in 1989 to administer Deposit Insurance System (DIS) in Nigeria. The objectives of NDIC include protection of depositors, particularly small savers, by providing an orderly means of reimbursement in the event of failure of an insured banking institution. The core mandates of NDIC include Deposit Guarantee, Bank Supervision, Failure Resolution and Bank Liquidation.”