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NDIC to pay N16.1bn liquidation dividends of 20 failed banks

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The Nigeria Deposit Insurance Corporation (NDIC) has resolved to pay the liquidation dividends worth N16.18 billion for depositors of 20 failed banks.

The NDIC Managing Director, Mr. Bello Hassan, disclosed this during the NDIC Day at the ongoing 44th Kano International Trade Fair in Kano on Friday.

He gave the names of the affected banks as 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.

Others are – 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 said following the recent revocation of licenses for 179 Microfinance banks (MFDS) and four Primary Mortgage Banks (PMBS) by the Central Bank of Nigeria, the NDIC immediately commenced liquidation of the banks and started disbursing Insured sums to the depositors within just seven days of the closure of the microfinance banks.

READ ALSO: NDIC begins liquidation of 42 microfinance banks

He said: “It is important to note that out of these, the NDIC has paid N1.5 billion to 41,034 depositors of 129 MFBs and PMBs.

“While depositors of Deposit Money Banks, Primary Mortgage Banks, Non-Interest Banks, Payment Service Banks, and subscribers of Mobile Money Operators are insured up to a maximum limit of N500,000 per depositor per bank; for depositors of Microfinance Banks, the maximum insurance Limit stands at N200,000 per depositor per bank.

“These insured limits undergo process reviews by the Board of the Corporation, ensuring comprehensive coverage for the majority of depositors.”

He assured that the NDIC would continue to work with CBN to ensure effective supervision of banks and adherence to procedures, guidelines, and the Code of Corporate Governance for banks which safeguards the safety and stability of the country’s banking system.

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