NDIC Pays Over N1.7bn To Customers Of Failed Banks

The Nigeria Deposit Insurance Corporation (NDIC) has announced the disbursement of more than N1.7 billion to customers affected by the revocation of licenses of Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs).

Speaking at the 2023 NDIC Editors Forum in Lagos, Mr Bello Hassan, the Managing Director/Chief Executive Officer of NDIC, revealed that the payments were made following the revocation of licenses by the Central Bank of Nigeria (CBN) earlier this year, affecting 183 institutions comprising Microfinance Banks and Primary Mortgage Banks.

“We quickly advertised and informed affected depositors to provide the required documents for verification so that we can pay them the insured amount,” Hassan stated.

The payments, totalling over N1.7 billion to more than 22,000 customers, have been made, but Hassan urged customers without a Bank Verification Number (BVN) attached to their accounts to come forward for verification and to claim their insured amounts.

He highlighted that insured deposits represent the initial claim paid to depositors by NDIC in the event of a bank’s license revocation, with set limits of N200,000 and N500,000 per depositor per bank for the MFB and PMB sub-sectors, respectively.

Stressing the importance of the Deposit Insurance System, Hassan outlined NDIC’s role in minimising bank risks and failures through strict banking supervision, reimbursement of insured depositors, and orderly liquidation of failed banks.

He noted that NDIC’s operations complement the efforts of the Central Bank of Nigeria in maintaining a secure and stable banking system and supporting fiscal authorities in preserving stability within the broader financial system, which is crucial for economic growth and development.

Hassan acknowledged the challenges faced by NDIC, attributing them to macroeconomic factors and evolving dynamics in the financial services industry. He reiterated NDIC’s alignment with CBN’s initiatives in strengthening the banking industry by enhancing prudential thresholds and other regulatory measures.

NAN