NDIC Initiates N16 Billion Payout To Depositors Of Failed Banks

In a significant development, the Nigeria Deposit Insurance Corporation (NDIC) has announced the commencement of payments totaling N16.18 billion to depositors affected by the closure of 20 liquidated financial institutions. 

The disclosure was made by the Managing Director of NDIC, Bello Hassan, during the NDIC Special Day at the 44th Kano International Trade Fair.

The affected depositors have been urged to promptly submit relevant documents for verification to facilitate the seamless disbursement of funds. 

Hassan outlined that the payout includes depositors from various banks, namely Liberty Bank, City Express Bank, Assurance Batik, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North South Bank, and Prime Merchant Bank.

The list of banks also encompasses Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank.

 Hassan emphasized the importance of adhering to the documentation process for affected depositors to access their funds.

Highlighting the recent actions taken by NDIC, Hassan revealed that the licenses of 179 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) were revoked due to their failure to meet statutory responsibilities. He assured depositors of these banks that immediate payment has commenced within seven days of the closure of the microfinance banks.

Hassan clarified, “Out of these, the NDIC has paid N1.5 billion to 41,034 depositors of 129 MFBs and PMBs. Payment is still ongoing, and depositors with funds exceeding the standard will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.”

It was reiterated that in the unfortunate event of a bank failure, NDIC’s insurance coverage extends to all depositors, including those of Deposit Money Banks (DMBs), Primary Mortgage Banks (PMBs), Non-Interest Banks (NIBs), Payment Service Banks (PSBs), and subscribers of Mobile Money Operators (MMOs). 

Depositors of Microfinance Banks (MFBs) are insured up to a maximum limit of N200,000 per person.

The NDIC, represented by a deputy director at the Kano office, Rakiya Imam, emphasized its commitment to safeguarding depositors’ interests and facilitating a swift resolution process in the wake of financial institution closures. 

The ongoing payouts are expected to provide relief to affected depositors and underscore the importance of maintaining a robust financial system.

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