NDIC pays N102bn to depositors of closed banks

The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan has disclosed that the corporation has paid a total of N101.67bn uninsured sums as of 30th June 2021 to 535, 815 depositors of closed banks

Hassan made the disclosure at the corporation’s special day at the 16th Abuja international trade fair held on Tuesday.

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He also disclosed that the Corporation has paid a cumulative amount of N11.76bn as insured sums to 535, 815 depositors

In addition, a total of N6.16bn has been paid as a liquidation dividend to 1,955 creditors and shareholders of closed banks.

While the insured limits are periodically reviewed by the Board of the Corporation to ensure that the majority of depositors are covered, depositors who have balances in excess of the insured sums are regularly paid the excess as liquidation dividends, which often extends to creditors and shareholders of the banks.

As provided for in the NDIC Act 2006, when insured financial institutions fail, depositors of Deposit Money Banks (DMBs), Non-Interest Banks (NIBs), Primary Mortgage Banks (PMBs) and subscribers of Mobile Money Operators (MMOs) are reimbursed up to a maximum limit of N500,000.00, while the maximum insured coverage for depositors of Microfinance Bank (MFBs) is N200,000.00.

In the same vein, the Corporation has extended deposit insurance cover to the recently licensed Payment Service Banks (PSBs) to the tune of N500,000 per depositor in order to engender confidence in the financial system.

Hassan who was represented by the Director corporate communication, Bashir Nuhu further disclosed that the Corporation has declared full payment of insured and uninsured sums to depositors of eighteen (18) banks in-liquidation. “This implies that the Corporation has realized a liquidation dividend to pay all depositors of the banks who present themselves for payment.”