The Nigeria Deposit Insurance Corporation (NDIC) has declared that liquidation dividends amounting to N16.18 Billion for depositors of 20 closed banks were not accessed.
It also said so far, it has paid N1.595 billion to 41,034 depositors of 129 Microfinance Banks (MFBs) and three Primary Mortgage Banks (PMBs).
The Managing Director and Chief Executive Officer, NDIC, Bello Hassan said this on Thursday at the NDIC special day at the ongoing 44th Kano International Trade fair with the theme, “Economic diversification, inclusive growth and sustainable development.”
He said, “Recently, following the revocation of licences for 179 Microfinance Banks (MFDS) and 4 Primary Mortgage Banks (PMBS) 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 out of these, the NDIC has paid N1.595 Billion to 41,034 depositors of 129 MFBs and 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.
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“The corporation has recorded significant achievements in the area of bank liquidation. The corporation has declared full liquidation dividends in the amount of N16.18 billion for depositors of 20 closed banks to come forward for verification and payment of their deposits that are in excess of the guaranteed sums.”
He added that 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 (PMEs), Non-Interest 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.