Banks Liquidation: N16.2bn Remain Unclaimed By Depositors

The Nigeria Deposit Insurance Corporation, (NDIC), has revealed that following the 100 percent liquidation of twenty closed banks, depositors are yet to claim their money, amounting to N16.18 billion.

Managing Director and Chief Executive of the NDIC, Bello Hassan, stated this at the NDIC Day of the Kano 44th International Trade Fair, organized by the Kano Chamber of Commerce Industry, Mines and Agriculture, (KACCIMA), held in Kano on Thursday.

According to Hassan, depositors from twenty closed banks should come forward for verification and payment of their deposits that are in excess of the guaranteed sums, otherwise called “liquidation dividends.”

He said the liquidated banks include the closed banks covered by this exercise that 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 include Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Barik, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank in-liquidation.

The CEO, who was represented by Hajiya Rakiya Imam, an official of the NDIC, the Corporation urges relevant stakeholders to visit any NDIC office or access the claims page on its website, www.ndic.gov.ng, to download, complete, and submit the verification form along with the prescribed supporting documents.

She added that submissions should be sent to the dedicated email: [email protected].

Mrs Imam further stated that recently, following the revocation of licenses for 179 Microfinance Banks (MFBs) and 4 Primary Mortgage Banks (PMBS) by the Central Bank of Nigeria (CBN), the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks.

“It’s Important to note that out of these, the NDIC has paid N1.595 billion) to 41,034 depositors of 129 MFBs and three PMBS, Payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.

“Ladies and gentlemen, it is imperative to note that in the unfortunate event of bank failure, the current insurance coverage for depositors varies across different banking institutions.

“While depositors of Deposit Money Banks (DMBs), Primary Mortgage Banks (PMBs), Non-Interes: 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 limit stands at N200,000 per depositor per bank.

“These Insured limits undergo periodic reviews by the Board of the Corporation, ensuring comprehensive coverage for the majority of depositors. Furthermore, depositors holding balances 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,” she said.

In his remarks earlier, the President, Kano Chamber of Commerce, Industries, Mines, and Agriculture, KACCIMA, Alhaji Garba Imam, said this year’s Trade Fair has expressed delight over the success of this year’s event.

He noted that KACCIMA had provided a platform for organizations to showcase their services to the public, aimed at economic development.

He said KACCIMA’s door is always open to business and corporate bodies for partnership in a bid to contribute to the development of economy of the nation.