NDIC pays N116.258bn to customers of dead banks

The Nigeria Deposit Insurance Corporation (NDIC) on Thursday said it paid a sum of N116.258 billion to depositors and customers of defunct banks last year.

NDIC Managing Director/CEO, Alhaji Umaru Ibrahim, revealed this while speaking at the 14th International Trade Fair in Abuja, said the payment comprised insured and uninsured deposits of N108.641 billion,  N2.973 billion, and N70.53 million to depositors of defunct deposit money banks (DMBs), micro finance banks (MfBs) and primary mortgage banks (PMBs).

Represented by the Director of Research of the Corporation, Dr. Muhammed Ibrahim, the CEO said as at June 30, this year, the number of subscribers to Mobile Money Operators (MMO) stood at 9,249,265.

“As it stands, the number of licensed MMOs by the CBN is  23, with eight being ‘Bank-Led’ and the remaining  15 ‘Non-Bank Led’.

“In the last quarter of 2018, the CBN revoked the licenses of 154 MfBs and six PMBs due to their insolvency, corporate governance issues, etc. Hence, the Corporation successfully liquidated the failed banks and has commenced payment to the depositors of the affected banks.

“As at 30th June, 2019, the Corporation received a total number of 35 petitions/complaints from banks customers on various issues such as ATM frauds, unauthorised funds transfers, cheque related issues and much more. Investigations and mediation were carried out where necessary and customers were appropriately reprieved.

“Recently, in collaboration with the CBN, the Corporation adopted a ’bridge bank’ resolution option in the resolution of Skye Bank Plc and the establishment of Polaris Bank Ltd.

“Consequently, Polaris Bank Ltd was able to continue banking operations in the 277 branches of the defunct Skye Bank, over 6,000 jobs were saved and depositors have unhindered access to their deposits in excess of N949.60 billion as at June 2018.”

The President, Abuja Chamber of Commerce and Industry (ABUCCIMA), Prince Adetokunbo Kayode, in his remarks commended the NDIC for its very important role in the economy, and urged the Corporation to continue its public awareness campaign to further strengthen public confidence in the banking sector.