NDIC Pays N1.08bn to Depositors of Failed Banks

The Managing Director of the Nigeria Deposit Insurance Corporation, Mr Bello Hassan, said it has paid about N1.08bn to 29,573 depositors of the recently closed microfinance banks and primary mortgage banks.

He disclosed this while delivering a speech at the 18th Abuja International Trade Fair on Thursday.

While noting that payment was still on-going, he said depositors with funds exceeding the insured limit would get the liquidation dividends after recovery of debts and sale of physical assets of the closed banks.

Hassan said: “Recently, following the revocation of licences 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 depositors within just 7 days of the closure of these banks.

“It’s important to note that as at 22nd September 2023, the Corporation had paid a cumulative insured sum of N1.084bn to 29,573 depositors of the closed MFBs/MPBs.

“It is however instructive to let you know that 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.”

The Nigerian depositors, he said, were the commission’s priority.

Hassan added: “Currently, the corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks: They are Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank.”

He advised depositors against illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes”, offering high interest rates and profits that were too good to be true, and might lead to devastating losses for many.

THE NDIC had earlier said that the deposits of directors and staff of defunct banks were excluded from its Deposit Insurance Scheme.