Payment of liquidation dividends to depositors of failed banks ongoing – NDIC

The Nigeria Deposit Insurance Corporation (NDIC) is currently settling the liquidation dividends of depositors of banks whose licenses were revoked by the Central Bank of Nigeria (CBN).

The Managing Director of the Corporation, Mr Bello Hassan, said this in an interview on the sidelines of the 2021 Financial Correspondents Association of Nigeria (FICAN) workshop on Friday in Ibadan.

”One of our mandates is also to liquidate license deposit institutions whose deposit has been revoked by the CBN.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 there is revocation of license is to pay the maximum insured amount.

“After that, we proceeded to recover the loans and advances that were granted by those institutions before revocation and also realise the assets that are left behind so that we can pay it to the depositors.

“ We only pay maximum insured amount at the point of liquidation then, subsequently, begin to pay depositors and after that we wind up but the payment is currently ongoing,’’ he said.

In a lecture, Mr Galadima Gana, the Director, Insurance and Surveillance Department of the NDIC, said the Corporation had successfully closed 325 MFBs, 50 PMBs and 49 DMBs whose licenses were revoked by the CBN with minimal diverse effect on the stability and confidence in the banking sector.

He said that NDIC had cumulatively paid N8.27billion to insured depositors of DMBs, N3.38billion to insured depositors of MFBs and N11billion to insured depositors of PMBs.

Gana representing 60.71 per cent, 46.94 per cent and 18.10 per cent of the insured amounts, respectively.

He said that the payment to uninsured depositors, creditors and shareholders of DMBs cumulatively stood at N100.85bn, N1.27billion and N4.83billion, respectively.

This, he said, represents 51.07 per cent, 73.13 per cent and 92.81 per cent of the respective amounts.