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By NBF News
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The Board of Nigeria Deposit Insurance Corporation (NDIC) has approved an upward review of the insurance cover for bank depositors in the country, its Acting Managing Director Alhaji Umaru Ibrahim said yesterday.

He did not say how much increment will be effected but said it will be announced when they are ready.Currently, NDIC pays N200, 000 and N100, 000 each to depositors of Universal bank and Microfinance Bank, respectively.

At a seminar on non-interest (Islamic) banking in Nigeria, organised by the NDIC, in Abuja, the MD said that the Corporation has developed a draft framework for the implementation of non-interest (Islamic) Deposit Insurance Scheme (NIDIS).

'We have therefore thought it fit at this crucial moment to design a non-interest (Islamic) Deposit Insurance Scheme in view of the realisation that non-interest banks will be involved in deposit-taking whenever they are licenced and commenced operations,'he said.

He said that their determination to extend deposit insurance protection to non-interest (Islamic) banks is in line with their statutory mandate and the new bank licencing regime of the Central Bank of Nigeria (CBN).

'It is our belief that non-interest banks should enjoy the benefits of deposit insurance protection right from the day they are licenced.'

Formal operation of Islamic banking system is yet to take off in Nigeria.

Jaiz International is the only organization that has applied for Islamic banking licence but is yet to get.

Managing Director of Jaiz International, Malam Mustapha Bintube said the bank would commence operation next year.

He said three challenges were responsible for the delay in the taking off of the Jaiz bank.

These include supervisory framework, lack of knowledge of Islamic Banking and huge capital involved.

'We have met the capital requirement and we have approached the Central Bank of Nigeria to give us licence. We would commence operation next year,' heĀ  said.