2% of Nigerians own 90% bank deposits — NDIC

By Emma Ujah, Abuja Bureau Chief As a major indicator of wealth distribution in Nigeria across income groups, a mere two per cent of Nigerians own 90 per cent of total deposits in Nigerian banks. This represents the wide gap between the rich and the poor in Nigeria, which continues to pose major socio-economic development challenges to the nation. Director of Research and International Relations at the Nigeria Deposit Insurance Corporation, NDIC, Alhaji Mohammed Umar, disclosed this at the Businessday Capital Market Development Annual Conference in Abuja, yesterday. His words: “Our current deposit insurance coverage is N500, 000 for the Deposit Money Banks. And some people have said that it is low. I can tell you that it is very adequate for the majority of accounts. “It will interest you to know that it covers over 90 per cent of accounts in the country. Indeed, Nigerians who have more than N500, 000 in their accounts are just two per cent. Emefiele CBN Governor “What we found is that this two per cent Nigerians have 90 per cent of banks’ total deposits. Look at that – two per cent Nigerians own 90 per cent of total banks deposits, while the remaining 98 per cent have just 10 per cent of total deposits. What that tells you is that the gap between the rich and the poor has continued in this country.” Alhaji Umar added that there were about 70 million bank account holders in the country. The total bank deposits stood at N17.2 trillion, as at December 2015, according to a post on the Central Bank of Nigeria, CBN, website. Earlier in his address, the Director-General of the Securities and Exchange Commission, SEC, Mr. Mounir Gwarzo, urged Pension Fund Administrators, PFAs, to invest more in the nation’s capital market, with a view to deepening it and ensuring better returns on contributor’s funds. He said: “Deepening Nigeria’s Capital Market through Maximum Utilization of Pension Funds is a conversation our country must continue to have in order to ensure that the impressive pool of savings we have been able to mobilize over the last decade is put to productive use for inclusive economic growth. “We are confident that with greater participation by PFAs and return of retail investors, our capital market will emerge as one of the world’s biggest and most liquid market capable of supporting the socio-economic development of our country. “We are delighted that the National Pension Commission, PenCom, has been very proactive in making the necessary adjustments to the guidelines that allow PFAs sufficient flexibility to determine their optimal strategic asset allocation. “The draft new regulation on investment of pension fund assets allow the investment of up to 30% in equities (for Fund type 1) and up to 45% in corporate debt securities (for Fund types 3 and 4). As a whole, we believe the adoption of a multi-fund structure is a very positive development that should produce economies of scale, risk diversification and further deepen the Nigerian capital market through pension portfolios and management strategies of PFAs. “There is, therefore, an urgent need for the draft guidelines on multi-fund structure to be approved. “The question is: Based on the current asset allocation by Nigerian PFAs, are they paying sufficient attention to generating the necessary returns to provide sustainable benefits to contributors? Can we say that Nigerian PFAs have achieved an optimal strategic asset allocation or explored all viable investment outlets? “March 2016 data from PenCom shows that Nigerian PFAs invest only 8.16% of their assets in the domestic listed equities market and 1.24% of their assets in foreign equities.

Read more at: http://www.vanguardngr.com/2016/06/2-nigerians-90-bank-deposits-ndic/

I can't stop laughing

This is preposterous.

Come enjoy premium services for less this festive season for all your research projects.
See: https://www.nairaland.com/tradelyn

Wot abt those that don't keep their money in banks,nor even store their money in cash(but gold,diamonds,..etc)

500k seems a v poor yardstick

Odi egwu mehn!

Will the gap between the rich and the poor ever close!

One major reason for this lack of power supply to drive SMEs that in turn improve the size of middle class earners. Alot of people have bank account for the sole purpose of recieving the meagre pay and not for saving.

The gap between the rich and the poor in this country eh I wonder if Julius berger can fill it........

OMG.. No wonder all those customer care people dey misbehave anyhow

Nigeria isn't a country in the true meaning of the word.

Its just a convenient political entity to create wealth for the very few people who are privileged to have political power.
Over 70% of the country's wealth is channelled at sustaining and maintaining this political class. If you guys think there's going to be any shift in the welfare and developmental index of Nigeria with the present system of sham government in practice here, then you guys deserve all the suffering coming to you.

The present system of government hasn't worked for 50 years, and voting an ancient relic devoid of economic ideas into power has made it much worse.

So appalling

chisos!

This is not just about banks.
Nigeria is a very rich country, but her riches is not and will never be evenly distributed. This is because the few rich men in this country belongs to club 99-The richer they are, the more hungry they become for wealth. Presently, about 90% of the country's wealth is owned and controlled by just 10% of the people. If there's any vacancy for employment in a company or ministry right now, the slot will be given to a big man there, and he will call another rich friend or relative and ask "is any of your children interested in working with us? Pls send his name for immediate employment". The poor masses is always neglected because the rich is always insatiable. But if this ugly trend is not checked, a time will come when 100% of the wealth of this country will be owned by just 10% of the people so that the poor masses who constitute the remaining 90% will be begging from the rich to eat.

Say What?

Ok

Madu ebuo

Lord have mercy

this is shocking!

#pray4nigeria

nwabobo:
2% of Nigerians own 90% bank deposits — NDIC

By Emma Ujah, Abuja Bureau Chief As a major indicator of wealth distribution in Nigeria across income groups, a mere two per cent of Nigerians own 90 per cent of total deposits in Nigerian banks. This represents the wide gap between the rich and the poor in Nigeria, which continues to pose major socio-economic development challenges to the nation. Director of Research and International Relations at the Nigeria Deposit Insurance Corporation, NDIC, Alhaji Mohammed Umar, disclosed this at the Businessday Capital Market Development Annual Conference in Abuja, yesterday. His words: “Our current deposit insurance coverage is N500, 000 for the Deposit Money Banks. And some people have said that it is low. I can tell you that it is very adequate for the majority of accounts. “It will interest you to know that it covers over 90 per cent of accounts in the country. Indeed, Nigerians who have more than N500, 000 in their accounts are just two per cent. Emefiele CBN Governor “What we found is that this two per cent Nigerians have 90 per cent of banks’ total deposits. Look at that – two per cent Nigerians own 90 per cent of total banks deposits, while the remaining 98 per cent have just 10 per cent of total deposits. What that tells you is that the gap between the rich and the poor has continued in this country.” Alhaji Umar added that there were about 70 million bank account holders in the country. The total bank deposits stood at N17.2 trillion, as at December 2015, according to a post on the Central Bank of Nigeria, CBN, website. Earlier in his address, the Director-General of the Securities and Exchange Commission, SEC, Mr. Mounir Gwarzo, urged Pension Fund Administrators, PFAs, to invest more in the nation’s capital market, with a view to deepening it and ensuring better returns on contributor’s funds. He said: “Deepening Nigeria’s Capital Market through Maximum Utilization of Pension Funds is a conversation our country must continue to have in order to ensure that the impressive pool of savings we have been able to mobilize over the last decade is put to productive use for inclusive economic growth. “We are confident that with greater participation by PFAs and return of retail investors, our capital market will emerge as one of the world’s biggest and most liquid market capable of supporting the socio-economic development of our country. “We are delighted that the National Pension Commission, PenCom, has been very proactive in making the necessary adjustments to the guidelines that allow PFAs sufficient flexibility to determine their optimal strategic asset allocation. “The draft new regulation on investment of pension fund assets allow the investment of up to 30% in equities (for Fund type 1) and up to 45% in corporate debt securities (for Fund types 3 and 4). As a whole, we believe the adoption of a multi-fund structure is a very positive development that should produce economies of scale, risk diversification and further deepen the Nigerian capital market through pension portfolios and management strategies of PFAs. “There is, therefore, an urgent need for the draft guidelines on multi-fund structure to be approved. “The question is: Based on the current asset allocation by Nigerian PFAs, are they paying sufficient attention to generating the necessary returns to provide sustainable benefits to contributors? Can we say that Nigerian PFAs have achieved an optimal strategic asset allocation or explored all viable investment outlets? “March 2016 data from PenCom shows that Nigerian PFAs invest only 8.16% of their assets in the domestic listed equities market and 1.24% of their assets in foreign equities.

Read more at: http://www.vanguardngr.com/2016/06/2-nigerians-90-bank-deposits-ndic/

Over 90% of Nigerians are poor busters and low income earners.

Hawlahscho:


Something told me you haven't read the post before this comment.

That something misleads you

Wow! There is wickedness & a great deal of comspiracy against the poor masses by d elite. Imagine, 2%!. No wonder they deployed all arsenal at their disposal to bring down any programme that have d potentials of bridging that gap! - MMM.
They abhor an egalitarian society. WHAT A CONSPIRACY. This country is doom. It will b a big falacy to think gover't policies can bridge such gaps, b'cos policies are merely made to favour d elite. We need a revolution in this country.

yet the poor folks will be all over themselves just to please the rich at all cost to the detriment of themselves....a typical case of poor in the pocket and poor at heart! at any rate, the rich are a selfish cold-hearted bunch who don't give a hoot about the teaming poor

This statistics is against the pareto principle. This is as a result of greed & bad govt policies.

PDP killed Nigeria with corruption.

The owners of these high deposits will be mostly PDP politicians apart of the likes of Dangote. One man will be holding billions of naira that should have been used for all.

Waksdabos:
Wow! There is wickedness & a great deal of comspiracy against the poor masses by d elite. Imagine, 2%!. No wonder they deployed all arsenal at their disposal to bring down any programme that have d potentials of bridging that gap! - MMM.
They abhor an egalitarian society. WHAT A CONSPIRACY. This country is doom. It will b a big falacy to think gover't policies can bridge such gaps, b'cos policies are merely made to favour d elite. We need a revolution in this country.

MMM bridging the gap?? Shaking my head for you.

You did not mention adequate infrastructure, you did not mention favourable government policies that will encourage sme and smi growth, you did not think of serious fight against corruption. No wonder we keep electing bad leaders and we keep praising bad people has our hero because we really don't know what is going on around us.