NDIC to Pay N16.18Bn Liquidation Dividends to Depositors of 20 Failed Banks

Nigeria Deposit Insurance Corporation (NIDC), has asked depositors of 20 failed banks to come forward and claim their liquidation dividends amounting to N16.8 billion.

Bello Hassan, managing director of the Corporation, who spoke during the NDIC Day at the ongoing 44th Kano International Trade Fair, said the closedown banks covered by this exercise include Liberty Bank, City Express Bank, Assurance Batik, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North-South Bank, and Prime Merchant Bank.

He said that others that were affected include, Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank.

Hassan hints that recently, following the revocation of licenses for 179 Microfinance Lanes (MFDS) and 4 Primary Mortgage Banks (PMBS) by the Central Bank of Nigeria, the NDIC immediately commences liquidation of the banks and began disbursing Insured sums to the Depositors within just 7 days of the closure of the Microfinance banks.

“It’s important to note that out of these, the NDIC has paid N1.5 Bn to 41,034 Depositor of 129 MFBs and PMBs, adding that Payments are still ongoing and depositors with funds exceeding the standard will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.”

Bello explained that it is imperative to note that in the unfortunate event of bank failure, the insurance coverage for depositors varies across different banking institutions, while depositors of Deposit Money Banks (DMBS), Primary Mortgage Banks (PMEs), Non-Interest Banks (NIBs), Payment Service Banks (PSBS), and subscribers of Mobile Money Operators (MMOs) are insured up to a maximum limit of N500,000 per depositor per bank, for depositors of Microfinance Banks (MFBS), the maximum insurance Iimit stands at N200,000 per depositor per bank.

These insured limits undergo process reviews by the Board of the Corporation, ensuring comprehensive coverage for the majority of depositors, Furthermore, depositors holding linsences exceeding the insured sums receive regular payments of the excess in the form of liquidation dividends, that also extends to the benefit of creditors and shareholders of the respective banks.

The Managing Director assured that the NDIC continues to work in collaboration with the Central Bank of Nigeria (CBN) to ensure effective supervision of Banks and adherence to procedures guidelines and the Code of Corporate Governance for banks, which safeguards the safety and stability of Nigeria’s Banking system.

” I call on the general public, especially traders and businessmen, to always ensure that their funds are saved in licensed banks and not kept in their homes or shops to avoid the risks of fire, then, and armed robbery,