NDIC pays 535, 815 depositors of failed banks N11.76bn

The Nigerian Depositors Insurance Corporation (NDIC) on Thursday declared that the corporation has paid a sum of N11.76 billion as insured sums to 535,815 depositors, while N101.666 billion had been paid as the uninsured sum from 1989 to June 30, 2021.

The Managing Director, Chief Executive Officer of NDIC, Mr Bello Hassan, made this known in Benin City, Edo State while speaking at the corporation’s special day at the ongoing Edo International Trade Fair.

Hassan spoke through Mr Udofor Ukpom, Senior Manager, NDIC, Benin Zone, with the theme, “Expanding the Frontiers of MSMEs through Collaboration and Capacity Building” organized by Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA)

According to him, “NDIC was established in 1989 as a Statutory Agency of government with four broad mandates of Deposit Guarantee Bank Supervision, Distress Resolution and Bank Liquidation.

“With the primary public policy objectives of contributing to financial system stability by making incidences of bank runs less likely, while also protecting depositors by providing an orderly means of resolution and reimbursement in the event of bank failures.

“From inception till date, NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability and paid cumulative amount of N11.76bn as insured sums to 535, 815 depositors of closed banks while a total of N101.666bn had been paid as uninsured sum as at June 30, 2021.

“In addition, a total of N6.159bn had been paid as liquidation dividend to 1,955 creditors and shareholders of closed banks.

“Instructively, the Corporation has declared full payment of insured and uninsured sums to depositors of eighteen banks in liquidation.

“This implies that the Corporation has realized liquidation dividend to pay all depositors of the banks who present themselves for payment.

“Likewise, NDIC has continued to strive for a sound, a safe and stable financial system which is pivotal for sustainable economic growth and in that regard, has responded to innovations in the financial system by extending deposit insurance cover to MFBS, PMBs, NIBs and MMOs and also to the recently licensed Payment service banks (PSBs) in order to engender confidence in the financial system.”

NDIC MD however advised Nigerians to remain vigilant and not disclose their ATM details and account information inadvertently and also not patronize the services of Ponzi schemes and illegal fund managers, who parade themselves as deposit-taking institutions.

Earlier, the Managing Director, of Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), Mrs Aina Omo-Ojo, thanked NDIC for coming to the fair in order to enlighten the public on their operations and also on how to make sure that as business people they don’t lose their hard-earned money through banks.