The Nigeria Deposit Insurance Corporation (NDIC) was established on 15 June 1988 to strengthen the safety net for the newly liberalized banking sector, following the recommendation of former Central Bank of Nigeria governor Ola Vincent.
The NDIC is a parastatal under the Nigerian Ministry of Finance. The corporation is charged with protecting the banking system from instability occasioned by runs and loss of depositors’ confidence. The NDIC has a supervisory role over insured banks, They also provide deposit insurance services to microfinance institutions in Nigeria, The NDIC advises the CBN in the liquidation of distressed banks and manages distressed banks’ assets until they are fully liquidated.
