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NDIC liquidates 500 deposit money, microfinance banks

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The Nigeria Deposit Insurance Corporation (NDIC) has liquidated at least 500 deposit money, microfinance, and primary mortgage banks whose licences were revoked by the Central Bank of Nigeria (CBN).

The Director of Insurance and Surveillance Department of the NDIC, Galadima Gana, disclosed this at the 2021 Financial Correspondents Association of Nigeria (FICAN) workshop on Friday in Ibadan, Oyo State.

He said the corporation was currently settling the dividends of the banks’ depositors.

According to him, 325 MFBs, 50 PMBs, and 49 DMBs were affected in the exercise.

Gana revealed that NDIC had cumulatively paid N8.27 billion to insured depositors of the DMBs, N3.38 billion to MFBs depositors, and N11 billion to their PMBs counterparts.

He said the corporation had also paid N100.85 billion, N1.27 billion, and N4.83 billion to uninsured depositors, creditors, and shareholders of DMBs.

READ ALSO: NDIC begins liquidation of 42 microfinance banks

The Managing Director of the NDIC, Bello Hassan, also confirmed the development.

He said: “One of our mandates is also to liquidate licence deposit institutions whose licences have been revoked by the CBN. So you have various categories that are currently in liquidation, the Deposit Money Banks (DMBs), Micro Finance Banks (MFBs), and Primary Mortgage Banks (PMBs).

“As liquidator, what we do immediately when there is a revocation of licence is to pay the maximum insured amount.

“After that, the corporation will proceed to recover the loans and advances granted by the liquidated institutions before revocation and also realise the assets left behind so that we can pay it to the depositors.”

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