In this article, we will discuss about the NDIC salary structure in Nigeria currently as of 2023. The Nigerian Deposit Insurance Corporation (NDIC) is a federal government parastatal that pays its employees respectable monthly salaries. If you are wondering how much these salaries are, you have come to the right place because we will give you a detailed breakdown of the current and most up to date monthly salary scale of some selected NDIC employees in Nigeria today.
NIGERIAN DEPOSIT INSURANCE CORPORATION (NDIC): COMPANY OVERVIEW
The Nigeria Deposit Insurance Corporation (NDIC) is a federal government of Nigeria organization that insures deposits. The deposit insurance system helps to keep the financial system stable by protecting depositors and ensuring the settlement of insured monies when a deposit-taking financial institution is unable to refund their deposits.
The history of the Nigeria Deposit Insurance Corporation (NDIC) may be traced back to a report issued by the Board of the Central Bank of Nigeria (CBN) in 1983 to investigate the banking sector in Nigeria. In its report, the Committee suggested that a Depositors Protection Fund be established. As a result of the promulgation of Decree No. 22 on June 15, 1988, the Nigeria Deposit Insurance Corporation (NDIC) was founded.
Following its liberalization policy and the adoption of the 1986 Structural Adjustment Programme (SAP) in Nigeria, the then government took economic reform steps to bolster the banking sector’s safety net. The rapid growth of banks from 40 in 1986 to 120 in 1992 resulted in:
- Banks becoming more competitive, resulting in the adoption of sharp practices.
- Bank owners and management with dubious reputations
- Manpower shortfall
- Due to the licensing requirement that banks maintain appropriate geographic distribution, strange bedfellows were thrown together.
All of this resulted in major Corporate Governance issues and boardroom squabbles. The Corporation’s challenging predicament was aggravated by the unstable policy climate, economic downturn, and political upheavals of the time. As a result, the banking industry was already in trouble when the Corporation began operations in March 1989. The NDIC was operating in difficult terrain at the time, and was immediately tasked with managing banking industry distress in order to avoid approaching systemic crises and its implications. The Corporation took the following measures at the time to mitigate distress in the interest of depositors and the System:
- Moral suasion; continuous interaction with bank managers/owners
- Imposition of Holding Actions on distressed banks to restrict operations and encourage self-restructuring – about 52 distressed banks had Holding Actions imposed on them at that time.
- Rendering of Financial Assistance to banks; In 1989 alone, NDIC in collaboration with the CBN granted facilities to the tune of ₦2.3 billion to ten banks with serious liquidity problems
- Take over of Management and Control of 24 distressed banks between 1991 and 1996.
- Acquisition and restructuring of seven (7) distressed banks which were handed over to new investors in 1999 and 2000
- Implementation of Failed Banks Decree No. 18 of 1994. At the end of 1995, about one out of every two banks in Nigeria was distressed. The Decree was intended to assist distressed banks recover their classified assets and punish the malpractices that contributed to the distress. As at June 1996, the Corporation had recovered about ₦3.3 billion.
THE REASON FOR ESTABLISHING A DEPOSIT INSURANCE SCHEME IN NIGERIA
- The deposit insurance scheme was formed in Nigeria in 1989 after an enabling law, Decree No. 22 of 1988, was passed.
- The establishment of a formal bank deposit insurance scheme in Nigeria was motivated by at least five key factors. The first was a historical lesson based on previous bank failures in Nigeria. Many small depositors faced great suffering in the 1950s when twenty-one (21) of Nigeria’s twenty-five (25) indigenous banks closed their doors.
- The establishment of the Corporation was also informed by the approach which some other countries adopted to ensure banking stability. For example, Czechoslovakia which was the first country to establish a nation-wide deposit scheme in 1924, used the scheme to revitalize the country’s banking system after ravages of the First World War. In addition, the scheme served to encourage saving, by increasing the safety of deposits and ensuring the best possible development of banking practice in that country. Similarly, the United States of America (USA) established the Federal Deposit Insurance Corporation (FDIC) in 1933 in response to a banking collapse and panic.
- In addition, the government’s Structural Adjustment Programme (SAP) began in 1986 with the goal of deregulating the economy and moving toward market-determined pricing. Deregulation was expected to result in a significant increase in the number of licensed banks subject to CBN supervision, as the bank licensing procedure would be liberalized. The CBN’s supervisory efforts were expected to be supplemented by the creation of an explicit deposit insurance program with supervisory powers over insured banks. Despite the growth in the number of banks, both institutions (CBN and NDIC) have been able to conduct routine and special exams of licensed banks more frequently than before since the Corporation’s inception in 1989. Prior to the formation of the Corporation, banks are now examined more often.
- Finally, prior to the creation of the Corporation, the government was unwilling to allow any bank fail, regardless of its financial state or management quality. The government was concerned about the impact of a bank failure on confidence in the banking sector and the economy. As a result, the government has purposefully propped up a number of unproductive banks throughout the years, particularly those whose majority shareholders are State governments. As a result, the government established the Corporation to handle the deposit insurance plan on its behalf and to implement failure resolution alternatives for poorly managed bankrupt banks.
NDIC SALARY STRUCTURE IN NIGERIA 2023: WHAT THE NDIC PAYS ITS WORKERS
On the average, the entry-level salary at the National Deposit Insurance Corporation (NDIC) currently in this year 2023 is about ₦150,000. Allowances and bonuses such as travel allowance, housing, feeding, insurance, to mention but a few, help to boost the salary significantly.
Other monthly salaries paid to selected workers at the NDIC currently includes the following: CLICK HERE