NDIC begins payment of failed banks’ depositors, calls for bank accounts

The Nigeria Deposit Insurance Commission (NDIC) has begun the process of payment of depositors in 179 microfinance banks and four primary mortgage banks across the country.

The NDIC is the government’s agency responsible for guaranteeing the payment of deposits up to the maximum limit in accordance with its statute in the event of failure of an insured financial institution.

In a statement on the commission’s website, it called on depositors affected by the liquidation to provide alternate bank accounts in commercial banks for their payments.

For those without an alternate bank account, it stated,

“Depositors without alternate accounts in commercial banks and those yet to be verified should therefore visit the nearest NDIC office with proof of account ownership and verifiable means of identification for their verification and payment.”

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It also called on those yet to be verified to visit the claims page of the commission’s website to download the online verification form.

For depositors who had more than N250,000 deposits, the commission noted it has commenced sales of assets of the banks since it does not provide insurance cover for depositors in MfBs and mortgage banks above N250,000.

Its statement read, “Depositors with amounts above insured limits of Two Hundred Thousand Naira for microfinance banks and Five Hundred Thousand Naira for Primary Mortgage banks should note that the Corporation has commenced sales of assets and recovery of debts owed the closed banks to pay their balances.”

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Speaking on the issue during a capacity building workshop organised by senior management of the corporation, the Managing Director, Bello Hassan said the commission will not compromise standards as it goes commence the process of paying and the public should not be alarmed about the safety of financial institutions (banks).

He said, “It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a deposit insurer; others being the prudential Regulation and Supervision, Failure Resolution, Deposit Insurance and Lender of Last Resort function of the Central Bank of Nigeria (CBN).

“The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums.”