NDIC Pays Full Dividend To Depositors Of 20 Liquidated Banks

Out of the 49 Deposit Money Banks in-liquidation, the Nigerian Deposit Insurance Corporation (NDIC) has paid a 100 percent liquidation dividend to the Depositors of 20 of these institutions.

The Managing Director of NDIC Mr. Bello Hassan confirmed the amount on Monday at a workshop with the theme, “Boosting depositor’s confidence amidst emerging issues and challenges in the banking industry.”

He said the Corporation has realized enough funds from their assets to fully pay all depositors of the listed banks, noting that the NDIC provided deposit insurance coverage to a total of 981 insured financial institutions.

The breakdown includes 33 DMBs of 24 Commercial Banks, 6 Merchant Banks, three Non-interest Banks, and two Non-Interest Windows.

Others are 882 Microfinance Banks; 34 Primary Mortgage Banks; three Payment Service Banks and 29 Mobile Money Operators.

He said, “The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation.

 “The liquidation activities, as of June 30, 2022, covered a total of 467 insured financial institutions in liquidation, comprising 49 DMBs, 367 MFBs, and 51 PMBs.

“It is profound for me to say that out of the 49 DMBs in liquidation, the Corporation in September 2022 declared a 100 percent liquidation dividend in 20 of those institutions, meaning that the Corporation has realized enough funds from their assets to fully pay all depositors of the listed banks.”

He reiterated that the landmark achievements and others, would not have been possible, without the active support of the strategic stakeholders.

Shedding light on steps taken by NDIC to invigorate processes and procedures toward a more effective discharge of its depositor protection mandate, the NDIC MD said the corporation has scaled up the deposit insurance framework to provide timely support to insured institutions.

He said, “Over time, we have embarked on a series of strategic initiatives to achieve our desired vision. In the area of scaling up the deposit insurance framework and ensuring faster and orderly resolutions of liquidated insured institutions.

“In May this year, with the active participation of the relevant stakeholders, we developed and deployed the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks to strengthen our processes and procedure for data collection.

“The platform would not only ensure availability of quality, timely and complete data to the NDIC but would eliminate delays often experienced in reimbursing depositors following revocation of institutions’ licenses by the CBN.”