NDIC Refunds N1.7 Billion To 22,000 Depositors Of Defunct Microfinance, Mortgage Banks

Daud Olatunji

In a significant move towards financial restitution, the Nigeria Deposit Insurance Corporation (NDIC) has announced the disbursement of over N1.7 billion to more than 22,000 depositors affected by the revocation of licenses belonging to numerous microfinance banks and four primary mortgage banks. 

The revelation came during the 2023 NDIC Editors’ Forum held in Lagos on Saturday, where NDIC Managing Director, Bello Hassan, shared details of the successful compensation efforts.

The story unfolds back in May when the Central Bank of Nigeria took the decisive step of revoking operating licenses from a considerable number of microfinance banks, finance companies, and primary mortgage banks.

Hassan shed light on the swift actions taken by NDIC to communicate with the affected depositors and facilitate the payment process.

The MD emphasized the importance of depositors providing necessary documentation for verification to expedite the disbursement of insured amounts.

“Recall earlier this year, the Central Bank of Nigeria revoked the licenses of 183 institutions comprising Microfinance Banks and Primary Mortgage Banks,” Hassan stated.

“And we quickly advertised and told affected depositors to get the required documents and come forward for verification so that we can pay them the insured amount.”

The NDIC’s commitment to customer welfare was underscored as Hassan encouraged depositors without a bank verification number (BVN) attached to their accounts to step forward for the verification process.

This additional step is crucial to ensuring that all eligible depositors receive their insured amounts.

Hassan reiterated the ongoing nature of this process and urged depositors to promptly come forward.

The NDIC Managing Director also defended the deposit limits set for commercial banks and other institutions, clarifying that the insured deposits represent the initial claim paid to depositors following a bank’s license revocation.

For microfinance banks, the limit is set at N200,000 per depositor, while primary mortgage banks have a limit of N500,000 per depositor.

Hassan stressed the complementarity of NDIC operations with the efforts of the Central Bank of Nigeria in maintaining a secure and stable banking system.

In conclusion, Hassan underscored the importance of NDIC’s role in supporting fiscal authorities and preserving stability within the broader financial system.

The timely and transparent compensation of affected depositors serves as a testament to NDIC’s commitment to ensuring economic growth and development through a secure financial environment.

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