Nigeria: NDIC pays N102bn to failed banks’ depositors

Nigeria-Deposit-Insurance-Corporation-NDIC17 November 2014, Abuja – The Nigeria Deposit Insurance Corporation (NDIC) has put the total amount paid to depositors and shareholders of closed banks at N102.49 billion.

Managing Director/ Chief Executive Officer, Alhaji Umaru Ibrahim disclosed this at the just concluded Lagos International Trade Fair. The NDIC boss was represented by the Head, Strategy Development, NDIC, Dr. Kachollom Gang. He restated that the primary responsibility of the NDIC is to protect depositors, enhance public confidence and foster the safety, soundness and stability in the financial system.

“Following the revocation of the operating licences of about 48 insured deposit money banks (DMBs) in 1994, 1995, 2000, 2003 and 2006 and 103 microfinance banks in 2010, 83 in 2013 and 26 primary mortgage banks in 2014, the NDIC has paid a cumulative sum of N6.825 billion to 528,277 insured depositors of the DMBs in-liquidation as of August 31, 2014. “On the payment of liquidation dividends to the uninsured depositors of the closed DMBs, a cumulative sum of N93.646 billion has been paid as liquidation dividend to 250,497 depositors with claims in excess of the insured limit as of August 31, 2014. “Similarly, the corporation has paid liquidation dividend which stood at N2.031 billion to 453 shareholders of Alpha, Pan African and Nigeria Merchant Bank, as of August 31, 2014,” he explained.

Ibrahim urged depositors who are yet to file their claims to do so at any of the corporation’s appointed agent banks nearest to them. He stressed that in the last 25 years, the corporation had been committed to the effective discharge of its mandate of depositor protection and has recorded giant strides that stand to its credit. “The corporation has been effectively responding to all emerging issues in the global financial system, particularly financial literacy, consumer protection, financial inclusion, sustainable banking and extension of deposit insurance coverage to depositors of non-interest banks.

“These developments can be recalled in the Regulatory Framework for Mobile Payments Service in Nigeria which aimed at revoluntionalising the Nigerian Payment System in tune with global developments as well as facilitating financial inclusion in the country. “Also, the development has led to the licensing of 24 Mobile Money Operators (MMOs) by Central Bank of Nigeria. The NDIC has considered this as imperative of the extension of deposit insurance to individual subscribers of the MMOs in the form of pass-through deposit insurance. This framework is making the pass-through insurance scheme operational is currently being finalised by the Corporation,” the NDIC boss added.
*Akinwunmi Ibrahim – Thisday

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