NDIC Pays N90Bn to Depositors of Failed Banks

Nigeria Deposit Insurance Corporation (NDIC) claim it has paid depositors of 48 failed banks in the country N90.13 billion as at December 2012.

According to Alhaji Umar Ibrahim, managing director of the corporation, the figure represents 11 per cent rise over the N80.18 billion paid in 2011.

Ibrahim, who spoke during the NDIC’s special day at the on-going 34th Kaduna International Trade Fair, pointed out that the depositors’ money represented an increase of about N10 billion.

Besides, he added that a total of N2.50 billion had been paid to depositors of the 103 closed Micro Finance Banks (MFBs) as at December 2012, against the N2.25 billion that was paid to insured depositors of the defunct financial institutions s across the country.

“That was not all. A cumulative liquidation dividend payment to shareholders of Alpha Merchant Bank, Nigeria Merchant Bank and Pan African Bank (in-liquidation) stood at N373.04 million, N620.0 million and N293 million respectively during the period. This was in addition to the settlement of all the depositors and creditors of the three banks (liquidation)”, he said.

Noting that as part of efforts to sanitise and strengthen the microfinance banks and primary mortgage banks across the nation, the NDIC revoked the licences of the 103 failed Micro finance Banks and the 25 primary mortgage banks as well as the revision of the micro finance policy.

It is on record that the NDIC had paid a cumulative of N90.13 billion  to depositors of 48 deposit money banks in-liquidation as at 31st  December 2012 as against N80.18 billion paid to depositors  as at 31st December 2011, representing an increase of about N10 billion.

“A total of N2.50 billion had been paid to depositors  of 103 closed Micro finance Banks as at 31st December , 2012 as against the sum of N2.25 billion that was paid to the insured depositors of closed micro finance banks  as at 31st December 2011.”

The NDIC boss stressed that the corporation was not unaware of the perennial problems between customers and banks on various issues, such as bank charges, account balance and frauds, adding that “the corporation has established Complaints Units in the Bank Examination Department and the Special Insured Institutions Department to cater for the needs of customers of deposit money banks and primary mortgage banks/micro finance banks across the country.