NDIC pays N1.393 billion to depositors of 110 closed banks

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The Nigeria Deposit Insurance Corporation (NDIC) on Thursday said it has paid the cumulative insured sum of N1.393 billion to 36,163 depositors of 110 closed Microfinance Banks (MFBs) and three Primary Mortgage Banks.

Bello Hassa, managing director/CEO of the Corporation disclosed this during the NDIC special day at the ongoing 2023 Lagos international trade fair, themed, ‘Connecting Businesses, Creating Value,’ in Lagos.

Bello Hassa, Managing Director/CEO, Nigeria Deposit Insurance Corporation (NDIC)

He said 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.

“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”, he said.

According to him, the Corporation is currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 banks in liquidation.

The banks include 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 called on depositors of these 20 financial institutions closed by the CBN 15 years ago, to come for payment of their insured deposit.

Hassan said the NDIC would continue to collaborate with the 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.

He called 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.

“The NDIC in its efforts to boost depositors’ confidence in the financial landscape has continued to address genuine cases of infractions and complaints in relation with their respective insured institutions,” he said.

Bimbo Olashore, vice president, Lagos Chamber of Commerce & Industry (LCCI) thanked NDIC for being a worthy partner of LCCI over the years and for using the platform to reach all bank depositors.

He said the Lagos international trade fair is the biggest and the most vibrant fair in West Africa.

According to him, it is a very useful platform for people to use and advertise their goods and services.

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