‘NDIC Paying Additional N16.18bn To 20 Defunct Banks’

The Nigeria Deposit Insurance Corporation (NDIC)has said it is commencing payments to the depositors, creditors and shareholders of 20 banks whose operating licences had been revoked by the Central Bank of Nigeria between 1994 and 2018.

The payments, which is an additional payment having concluded the initial payments to stakeholders, is coming at the heels of a N16.18 billion that had been recovered by the NDIC from debtors of the defunct banks.

According to the Director Corporate Communications of the NDIC, Bashir Nuhu in a statement issued on Monday, the corporation had initially made cumulative payments of liquidation dividends totalling N45.45 billion as of July 2023, representing amounts exceeding the guaranteed sums to depositors of the 20 banks.

Nuhu in the statement said contrary to reports that a fresh liquidation of banks had occurred, said “we would like to clarify that the 20 banks mentioned in those reports were among the banks that had been previously closed due to the revocation of their operating licences by the Central Bank of Nigeria (CBN) between 1994 and 2018.

“The general public should be aware that the NDIC has fulfilled its commitment by paying the guaranteed sums owed to depositors.  In light of further recoveries from debtors of the liquidated banks, the Corporation has announced an additional N16.18 billion in liquidation dividends to be paid to depositors, creditors, and shareholders of the 20 banks in liquidation.

“We urge relevant stakeholders to visit any NDIC office or access the claims page on our website, www.ndic.gov.ng, to download, complete, and submit the verification form along with the prescribed supporting documents. Submissions should be sent to the dedicated email: [email protected].

“The closed banks covered by this exercise include Liberty Bank, City Express Bank, Assurance Bank, 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. Others are 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 in-liquidation.

“It is important to note that liquidation dividend represents the amount in excess of the insured sums paid by the NDIC to depositors of a closed bank. This amount is derived from recoveries made from the realisation of assets of failed financial institutions and covers payments to creditors and shareholders after the full payment to depositors of the defunct bank.