Nigeria Deposit Insurance Corporation (NDIC) says as at 22nd September 2023, it has paid a cumulative insured sum of N1.084 billion naira to 29,573 depositors of the closed Microfinance Banks(MFBs) and Primary Mortgage Banks(PMBs) MPBs.
Managing Director/Chief Executive, NDIC, Bello Hassan who disclosed this at the 18th Abuja International Trade Fair, on Thursday, in Abuja, stated that payments are still ongoing, while depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.
“Recently, following the revocation of licenses for 179 Microfinance Banks and 4 Primary Mortgage Banks 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”, the NDIC boss said.
Hassan said that the Corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks.
The closed Banks 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 urged eligible parties to visit the Corporation’s website for more information, download verification forms at, www.ndic.gov.ng and submit them to email@example.com.
Speaking on the theme of the18th edition of the Abuja International Trade Fair, tagged “Sustainable Financing and Taxation as Drivers for the New Economy,” the NDIC CEO affirmed that “this falls in line with the Corporation’s contributions of ensuring the stability of the financial system by effectively complimenting the CBN in supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failures when it occurs.
“Indeed, Nigerian depositors are our priority and our foundation is built on ensuring the safety and security of their deposits. This ideal is encapsulated in our strap line; “Protecting your bank deposits!”. This is crucial for financial inclusion because it gives Nigerians the assurance that their money is safe and accessible when needed.
“Furthermore, the Corporation’s activities through the supervision of banks, continuous monitoring and oversight serves as consumer protection for depositors which enhances confidence in the financial system.This acts as an incentive for the unbanked to access financial services of licensed banks”, he said.
While reiterating the Corporation’s mandate to provide deposit guarantee to depositors of insured financial institutions, bank supervision, distress resolution, and bank liquidation, the NDIC boss urged the public to be cautious of illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes.”, noting that the entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many.
He warned that these wonder banks are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme and advised members of the public to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country.