NDIC Disburses N1.39bn to 36,163 Depositors of Failed Banks

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that they have paid out N1.393 billion to 36,163 insured depositors and also disclosed they have recouped N16 billion for customers of 20 failed banks and urged affected customers to come forward.

The Managing Director/Chief Executive, NDIC, Bello Hassan, disclosed this recently at the NDIC Special Day at the ongoing 2023 Lagos International Trade Fair.

He also urged the attendants at the fair to desist from patronising wonder banks and Ponzi schemes.

Hassan, who was represented by the Director, Corporate Communication, Bashir Nuhu, said “Following the recent revocation of licenses of some Microfinance Banks and Primary Mortgage Banks by the Central Bank of Nigeria (CBN), the NDIC promptly commenced the liquidation of these banks and began disbursing insured sums to depositors within a record time of three days of the banks’ closure.

It would be recalled that on September 22, 2023, the corporation had paid a cumulative insured sum of N1.393 billion to 36,163 depositors of 110 closed MBs and three Primary Mortgage Banks. Most importantly, payments of the statutory insured sums are still ongoing, and depositors with funds exceeding the insured limit will receive liquidation dividends after the recovery of debts and the sale of the closed banks’ physical assets.”

He added that the corporation has pulled together around N16 billion from assets and that NDIC is currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 banks in liquidation including Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank, and Merchant Bank.

He reiterated that NDIC protects the interests of all depositors t in the event of imminent or actual bank failures amongst others.

“The NDIC complements the Central Bank of Nigeria in ensuring the safety, soundness, and stability of the financial system thereby instilling public confidence in the nation’s banking system.

“While the NDIC continues to collaborate with the Central Bank of Nigeria (CBN) in ensuring the effective supervision of banks and adherence to prudential thresholds and the Code of Corporate Governance for banks to safeguard the safety and stability of the Nigerian banking system, I would like to therefore call on the general public, especially traders and businessmen, to always ensure that their funds are saved in licensed banks and to avoid patronage of wonder banks and Ponzi schemes which always leave their victims with untold stories,” he added.