Following the revocation of licenses for 179 Microfinance Banks and 4 Primary Mortgage Banks by Central Bank of Nigeria (CBN), the Nigeria Deposite Insurance Corporation NDIC commenced liquidation of banks, began disbursing sums to depositors within just 7 days of the closure.
NDIC Managing Director/CEO, Bello Hassan who made this known at the 18th Abuja Trade fair NDIC’s Special day on Thursday, noted that as at 22nd Sept 2023, NDIC had paid a cumulative insured sum of N1.084 billion naira to 29,573 depositors of the closed MFBs/MPBs.
The MD said further that it’s however instructive to let the general public know that payments are still ongoing and depositors with funds exceeding insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.
Bello disclosed that currently, the Corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks which are Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank.
“Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank.
While asked eligible parties to visit the Corporation’s website for more information and download verification forms at, www.ndic.gov.ng and submit them to claimscomplaints@ndic.gov.ng.
He reiterated the key mandate of the Corporation which is to provide deposit guarantee to depositors of insured financial institutions, bank supervision, distress resolution, and bank liquidation.
“Over the years, we have grown stronger in fulfilling these responsibilities and have significantly enhanced our 7public policy objectives of establishing a robust deposit insurance scheme in Nigeria.
“Indeed, Nigerian depositors are our priority and our foundation is built on ensuring the safety and security of their deposits. This ideal is encapsulated in our strap line; “Protecting your bank deposits!”.
“This is crucial for financial inclusion because it gives Nigerians assurance that their money is safe, accessible when needed. The Corporation’s activities through the supervision of banks,
“Continuous monitoring and oversight serves as consumer protection for depositors which enhances confidence in the financial system. This acts as an incentive for the unbanked to access financial services of licensed banks”.
He added, “We at the NDIC hold the strong view that “Knowledge is Power”, and we believe that an informed depositor can make better financial decisions.
Bello urged the public to be cautious of illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes.” These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many.
“It’s important to note that these “wonder banks” are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme.
“Members of the public are therefore advised to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country.
He encouraged the general public to visit the NDIC pavilion where experienced staff will be on ground to address enquiries and also clarify issues about the operations of the deposit insurance.
“A helpdesk has also been set up at the stand where depositors of failed banks can find out where and how to access their deposits as well as process their claims”.
NDIC Boss expressed his sincere gratitude to the President and other Executive Members of the Abuja Chamber of Commerce, the royal fathers, and other distinguished guests who took time out of their busy schedules to be at the Abuja trade fair.