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Depositors of failed banks get N11.8bn

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The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that it paid N11.83 billion to over 443,949 insured depositors and over N101.37 billion to uninsured depositors of all categories of banks in liquidation.

Bello Hassan, managing director/chief executive of NDIC, disclosed this at the opening session of the 19th edition of the NDIC workshop for business editors and members of the Finance Correspondents Association of Nigeria (FICAN) in Port Harcourt, Rivers State.

The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation.

READ ALSO:NDIC MD, Hassan, denies report Polaris Bank has been sold

The liquidation activities, as of June 30, 2022, covered a total of 467 insured financial institutions in liquidation, comprising 49 Deposit Money Banks (DMBs), 367 Microfinance Banks (MFBs), and 51 Primary Mortgage Banks (PMBs).

Hassan said out of the 49 DMBs in liquidation, the Corporation in September 2022 declared a 100 per cent liquidation dividend in 20 of those institutions, meaning that the Corporation has realized enough funds from their assets to pay all depositors of the listed banks fully.

As of June 30, 2022, the NDIC provided deposit insurance coverage to a total of 981 insured financial institutions.

The breakdown includes 33 DMBs made up of 24, commercial banks, six Merchant Banks and three Non-Interest Banks (NIBs) plus two Non-Interest windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); three Payment Service Banks (PSBs) and 29 Mobile Money Operators.

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