Investor Presentaiton
The Country and its
institutions
Business Organisation Labour and Social
and Regulation
Security Regulations
The Nigerian Financial
Services Industry
Tax System
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Auditing Requirements
Importation of Goods Exportation of Goods
COVID-19 - Economic
and Fiscal Measures
1.4.20 Nigeria Deposit Insurance Corporation (NDIC)
The NDIC was established by the NDIC Act, 1988. The Act was repealed
and replaced by the NDIC Act, No. 16 of 2006 under which the NDIC has
responsibility to:
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insure all deposit liabilities of licensed banks and such other deposit
taking financial institutions operating in Nigeria in order to engender
confidence in the Nigerian banking system;
provide assistance to insured institutions in the interest of depositors
in case of imminent or actual financial difficulties particularly where
suspension of payments is threatened, to avoid damage to public
confidence in the banking system;
guarantee payments to depositors, in case of imminent or actual
suspension of payments by insured institutions up to the maximum
amount specified in the Act";
assist monetary authorities in the formulation and implementation
of banking policy so as to ensure sound banking practice and fair
competition among insured institutions in the country; and
pursue any other measure necessary to achieve the function of the
NDIC provided that such measures and actions are not repugnant to the
objects of the Corporation.
The NDIC, which is independent of the CBN, has the general responsibility
of instilling and maintaining public confidence in the Nigerian banking
industry.
The NDIC is empowered to, in consultation with the CBN, acquire, manage
and dispose of impaired assets of a failing insured institution, either directly
or through an Assets Management Company. It may also in consultation
with the CBN set up bridge banks to assume the assets and liabilities of
failing insured institutions. The NDIC exercised these powers in 2011, when
it transferred the assets and liabilities of three Nigerian banks to newly
incorporated bridge banks, namely, Mainstreet Bank Limited 12, Keystone
Bank Limited and Enterprise Bank Limited.
Furthermore, the NDIC may terminate the insured status of an institution
where such institution violates the provisions of the NDIC Act. The CBN
may revoke the licence of such insured institution, in which case the NDIC
shall act as the liquidator of the failed insured institution and exercise the
powers conferred on a liquidator by CAMA. The NDIC is supervised by the
Federal Ministry of Finance.
11 Based on Section 20(1) of the NDIC Act, this amount is N200,000 for depositors of licensed banks and N100,000 for depositors of other
licensed deposit-taking financial institutions. However, this amount has been reviewed upward to #500,000 for deposit money banks and
primary mortgage banks.
12 In 2014, Skye Bank acquired 100% equity stake in Mainstreet Bank Limited from Asset Management Corporation of Nigeria.
15
However, the bank became defunct in 2018 when its licence was revoked by CBN and was acquired by Polaris Bank Limited.
Investment in Nigeria Guide - 8th Edition
1.4.21 Department of Petroleum Resources (DPR)
The DPR is responsible for ensuring compliance with the terms governing
the award of oil licences to companies engaged in petroleum operations.
It monitors the oil companies' operations to ensure consistency with
international industry standards and practices.
Its other functions include:
• enforcing safety and environmental regulations;
• keeping and updating records on petroleum industry operations,
particularly on matters relating to petroleum reserves;
advising government and relevant agencies on technical matters and
public policies, which may affect the administration and control of
petroleum;
• processing all applications for licences to ensure compliance with laid
down guidelines; and
• ensuring timely and adequate payments of all rents and royalties as and
when due.
Any company wishing to render any service to the oil industry in Nigeria is
required to register with, and obtain a permit from, the DPR.
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