The Nigeria Deposit Insurance Corporation (NDIC) has announced its readiness to carry out full liquidation dividend payments, totaling N16.18 billion, for depositors of 20 closed banks, as these funds remain unclaimed.
The NDIC Managing Director, Bello Hassan, made this announcement during the NDIC Day at the ongoing 44th Kano International Trade Fair on Thursday.
The corporation has called on depositors to come forward for the verification and disbursement of their deposits that exceed the guaranteed sums, referred to as “liquidation dividends.”
Hassan stated that the banks covered by this initiative include Liberty Bank, City Express Bank, Assurance Batik, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa, Premier Commercial Bank, North-South Bank, and Prime Merchant Bank.
Other banks involved 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.
Hassan said following the revocation of licenses for 179 Microfinance Banks and four Primary Mortgage Banks by the Central Bank of Nigeria, the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to the depositors within seven days of the closure of the Microfinance banks.
“It is important to note that out of these, the NDIC has paid N1.5 billion to 41,034 depositors of 129 MFBs and PMBs,” he said.
He mentioned that the disbursements were still in progress, and depositors with amounts surpassing the standard will obtain liquidation dividends following the recovery of debts and the sale of physical assets from the closed banks.
The managing director emphasized the importance of recognizing that, in the unfortunate circumstance of bank failure, the insurance coverage for depositors differs among various banking institutions.
“While depositors of Deposit Money Banks, Primary Mortgage Banks, Non-Interest Banks, Payment Service Banks, and subscribers of Mobile Money Operators are insured up to a maximum limit of N500,000 per depositor per bank, for depositors of Microfinance Banks, the maximum insurance Limit stands at N200,000 per depositor per bank.”
“These insured limits undergo process reviews by the Board of the Corporation, ensuring comprehensive coverage for the majority of depositors, Furthermore, depositors holding licenses 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,” he said.
He guaranteed everyone that the NDIC would persist in collaborating with the Central Bank of Nigeria to ensure the thorough supervision of banks, adherence to procedures, guidelines, and compliance with the Code of Corporate Governance for banks. This commitment aims to safeguard the safety and stability of the Nigerian banking system.
He urged the general public, particularly traders and businessmen, to consistently opt for saving their funds in licensed banks rather than keeping them in their homes or shops. This precautionary measure helps mitigate the risks associated with fire, theft, and armed robbery.