Does the NDIC Protect the Interests of Creditors or Shareholders of a Bank?

The primary mandate of the NDIC is to protect depositors.

However, through supervision to ensure safety and soundness of banking institutions, the interest of creditors and shareholders are also protected.

In the event of bank failure, creditors and shareholders could be paid liquidation dividends after depositors had been fully reimbursed

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How does NDIC Protect Bank Depositors against Loss?
The NDIC protects bank depositors against loss through: a) Deposit Guarantee This is the most significant and distinct role of the NDIC. As a deposit insurer, the NDIC guarantees payment of deposits up to the maximum insured sum of N500,000 to a ...
How does NDIC Establish Ownership of a Bank Deposit?
The NDIC relies on deposit account records kept by a failed bank as well as on the proofs presented by depositors.
If a Depositor has more than the Maximum Insured Amount as Deposit in a Closed Bank, Is He Entitled to any further Claim for the amount of His Deposits in Excess of the Maximum Insured Amount paid by the NDIC?
Yes. In a situation where the amount of depositors’ fund in a closed bank exceeds the maximum insured amount, the owners of such accounts will share, on a pro-rata basis, in any proceeds from the liquidation of the bank’s assets with other general ...
How does the NDIC Protect the Insurance Fund?
The NDIC protects the Insurance Fund by keeping it with the CBN and investing the Fund in safe but liquid financial instruments such as Treasury Bills, Federal Government Bonds, and instruments of similar nature.
Whose Deposits do the NDIC Insure?
The NDIC insures bank deposits of natural persons as well as legal entities, whether they are from Nigeria or from any other country but resident in Nigeria.

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