Lagos, Nov. 11, 2023 – The Nigeria Deposit Insurance Corporation (NDIC) has paid N1.393 billion to 36,163 insured depositors failed banks in the country.
.Bello Hassan, its Managing Director, disclosed this on Friday while speaking at the NDIC Day at the on-going Lagos International Trade Fair in Lagos.
He said the 36,163 depositors were paid within a record time of three days.
Hassan was represented at the event by Bashir Nuhu, the Director, Corporate Communication in NDIC.
Hassan said the NDIC had also been able to pool N16 billion which would be paid to depositors and other stakeholders in 20 banks-in-liquidation.
“Following the recent revocation of licences 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 3 days.
“It is worthy to note that as of September 22, 2023, the corporation had paid a cumulative insured sum of N1.393 billion to 36,163 depositors of 110 closed MBs and 3 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 said that the NDIC was currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 banks in liquidation.
These banks included 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.
Hassan advised all Nigerians, especially traders and businessmen against saving in any of the wonder banks and ponzi schemes, but to save their funds in licensed banks.
The NDIC boss said the corporation was protecting the interests of small depositors by providing a mechanism for reimbursement 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.” (GBN)
