Business

NDIC to pay N16.8bn to customers of 20 liquidated commercial banks

The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Bello Hassan has said that the NDIC has concluded all necessary arrangements to pay the depositors of the 20 closed banks the sum of N16.18 billion.

Hassan disclosed this on Thursday in Kano at the NDIC Day at the Kano 44th International Trade Fair.

According to him, “The liquidated banks, 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.”

Hassan further disclosed that other liquidated commercial banks including 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.

He then stated that the depositors of these “20 closed banks should come forward for verification and payment of their deposits that are in excess of the guaranteed sums, otherwise called “liquidation dividends.”

Represented by Hajiya Rakiya Imam, an official of the NDIC, the Corporation urged 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, however, disclosed that the submissions should be sent to the dedicated email: claimscomplaints@ndic.gov.ng.

Imam, while speaking further hinted that following the revocation of licenses for 179 Microfinance Banks (MFBs) and four 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.

She noted that “It’s important to note that out of these, the NDIC has paid N1.595 billion to 41,034 depositors of 129 MFBs and 3 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.

“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,”

Earlier, the President, Kano Chamber of Commerce, Industries, Mines, and Agriculture, KACCIMA, Alhaji Garba Imam, expressed delight over the success of this year’s event.

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

“KACCIMA ‘s door is always open to business and corporate bodies for partnership in a bid to contribute to the development of the economy of the nation,” Imam said

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