The Nigeria Deposit Insurance Corporation (NDIC) yesterday disclosed that a total of N11.50 billion had been paid to depositors, creditors, shareholders and other stakeholders of closed financial institutions as at December 31, 2017.
Speaking during the NDIC Special Day at the Abuja International Trade Fair, with the theme: ‘Enhancing SMEs in Agribusiness through innovative technology’ in partnership with the Abuja Chamber of Commerce and Industry (ACCI), in Abuja, managing director/chief executive, NDIC, Alhaji Umaru Ibrahim also disclosed that the sum of N368.43 million was recovered by the corporation from debtors of failed banks during the period under review, bringing the total recoveries to N28.84 billion to date.
He also said that N21.85 billion had so far been realised from the sale of physical assets of closed banks as at 2017. According to him, depositors of 16 deposit money banks (DMBs) in-liquidation have so far been fully paid all the deposit balances they had in their accounts at the closure of the financial institutions as at 2017.
Ibrahim, who was represented by the director of Enterprise Risk Management, NDIC, Mr. Peter Nggada, said the corporation had made a 100 per cent and final liquidation of dividends to depositors of the defunct Eagle and Financial Merchant Banks (in-liquidation) which increased the number of banks for which a final dividend of 100 per cent had been declared to 16 in 2017.
He said that the corporation, in collaboration with the Central Bank of Nigeria (CBN), conducted an on-site and off-site supervisions of 25 Deposit Money Banks (DMBs) and one Non-Interest Bank (NIB).
According to him, the supervision was extended to 1,008 Micro Finance Banks (MFBs) and 38 Primary Mortgage Banks (PMBs) using the Risk Based Supervision (RBS) approach and Consolidated Risk Based Examination of three banks with Holding companies in a bid to ensure financial system stability in the country.
He said: “Presently each depositor of Deposit Money Banks (DMBs), Noninterest Banks (NIBs) and Primary Mortgage Banks (PMBs) is insured up to the maximum limit of N500,000, while the maximum insured coverage for depositors of Micro Finance Banks (MFBs) is N200, 000.
“However it is important to also stress that depositors who have funds in excess of the insured limits are paid dividends from the liquidation of failed banks depending on the quality of their assets and the outcome of debt recoveries by the Corporation.
“Apart from the DMBs, PMBs and MFBs, the Corporation also provides Deposit Insurance coverage to subscribers of Mobile Money Operators to the maximum limit of N500,000 through the Pass-Through Deposit Insurance Framework in its drive to promote financial inclusion across the broad spectrum of the economy. This followed the licensing of 21 MMOs by the Central Bank of Nigeria (CBN).
“In order to increase the level of financial inclusion among the 40.1 million Nigerians outside the formal financial system, the NDIC, as a member of the Financial Services Regulation Coordinating Committee (FSRCC), is proactively implementing the National Financial Inclusion Strategy by adopting various public awareness activities such as World Savings Day, promotion of financial literacy among youths in secondary schools, TV and Radio jingles, annual workshop for Business Editors and Finance Correspondents Association of Nigeria etc,” he said.