NDIC disburses N1bn to depositors of failed PMBs, MfBs

The Nigeria Deposit Insurance Corporation, NDIC, said it has disbursed about N1.084 billion to 29,573 depositors of over 179 Microfinance Banks (MfBs), and four Primary Mortgage Banks (PMBs) whose licenses were revoked by the Central Bank of Nigeria (CBN) as at 22nd September 2023.

The Managing Director/Chief Executive, NDIC, Mr. Bello Hassan, disclosed this on the occasion of NDIC’s special day at the 18th Abuja International Trade Fair, yesterday.

He stated: “Recently, following the revocation of licenses for 179 MfBs and four PMBs by CBN, the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks.

“It’s important to note that as at 22nd September 2023, the corporation had paid a cumulative insured sum of N1.084 billion naira to 29,573 depositors of the closed MFBs/MPBs.

“It is however instructive to let you know that payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.

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“Currently, the corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks.”

The affected banks were: Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank.

The corporation urged eligible parties to visit   its website for more information and download verification forms.

The NDIC boss further warned Nigerians against patronising banks that are not legitimately licensed by the Central Bank of Nigeria, CBN, or covered by the NDIC deposit insurance scheme.