NDIC declares 100% dividend to pay depositors of 20 liquidated banks

Mr. Bello Hassan, Managing Director, of Nigeria Deposit Insurance Corporation (NDIC), said the corporation in September, declared a 100 percent liquidation dividend in 20 institutions.

The dividends were in respect of the 49 Deposit Money Banks (DMBs) in liquidation.

Hassan made the disclosure at the 2022 NDIC workshop, organized for the Finance Correspondents Association of Nigeria (FICAN) and Business Editors, on Monday in Port Harcourt.

He said that the corporation had realized enough funds from its assets to fully pay all depositors of the listed banks.

The News Agency of Nigeria reports that the three-day workshop, which was its 19th edition, had “Boosting Depositors Confidence Amidst Emerging Issues and Challenges in the Banking System,” as the theme.

Hassan noted that the corporation had cumulatively paid ₦11.83 billion to more than 443,949 insured depositors and ₦101.37 billion to uninsured depositors of all categories of banks in liquidation, as of June.

“The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation.

“The liquidation activities, as of June 30, 2022, covered a total of 467 insured financial institutions in in-liquidation, comprising 49 DMBs, 367 MFBs, and 51 PMBs,” he said.

The NDIC boss said that the corporation had also provided deposit insurance coverage to a total of 981 insured financial institutions.

He named the financial institutions insured to be 33 DMBs made up of 24 Commercial Banks, six Merchant Banks, and three Non-Interest Banks (NIBs) plus two Non-Interest Windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); 3 Payment Service Banks (PSBs) and 29 Mobile Money Operators.

The NDIC boss said that the corporation had in May, developed and deployed the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks, to strengthen its processes and procedure for data collection.

He explained that the platform would not only ensure the availability of quality, timely and complete data to the NDIC but would eliminate delays often experienced in reimbursing depositors, following the revocation of institutions’ licenses by the CBN.

Advertisement

He said that the final phase of the implementation of the SCV for Deposit Money Banks (DMBs) would be achieved through the incorporation of the SCV template as part of the ongoing Integrated Regulatory Solution (IRS) jointly being developed with the CBN.

On consumer protection, the NDIC boss said the corporation had strengthened its complaints resolution platforms, which included the Toll-Free Help Desk, social media handles, and Complaints Desks in the Bank Examination.

Other strengthened platforms are Special Insured Institutions and Claims Resolutions Departments, and the Zonal Offices, to receive and process complaints from depositors.

He commended stakeholders and reiterated that the landmark achievements of the corporation and others, would not have been possible, without their active support.