NDIC Pays N1.3bn to 36,163 Depositors

The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to stay away from patronising wonder banks and Ponzi schemes even as it has paid out N1.393 billion to 36,163 insured depositors.

The corporation also said it has been able to pull together N16 billion which will soon commence paying to and stakeholders of 20 banks in liquidation. Speaking at the NDIC Special Day at the ongoing 2023 Lagos International Trade Fair yesterday, the managing director and chief executive of the NDIC, Bello Hassan noted that the 36,163 depositors had been paid within a record time of three days.

Hassan who was represented by the director, Corporate Communication, Bashir Nuhu said “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.”

Nothing that the corporation has pulled together around N16 billion from assets, he said it “is currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 banks in liquidation including 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.”

Explaining that the NDIC protects the interests of small depositors by providing a mechanism for reimbursement in the event of imminent or actual bank failures amongst others, he said “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.”

LCCI President, Michael Olawale Cole, speaking at the event, noted that there is a need for a policy framework to address deposit and insurance in the country. He furthered that the recent failure of Silicon Valley Bank calls for regulators in the banking industry to be more cautious of the spillover effects of global events.

Calling on the NDIC to have at hand resolutions options, he said it must also put in place strategies to reduce the cumbersome process of refunding  depositors of failed banks.

Commending the quick resolution and payment of depositors, he said there is need to also do more to ensure that bank failures are something that Nigerians do not have to worry about.