NDIC pays N1.084bn to depositors of closed MfBs

COMFORT EKELEME, Business Editor

The Nigeria Deposit Insurance Corporation (NDIC) said it has paid a cumulative insured sum of N1.084 billion to 29,573 depositors of the closed Microfinance Banks (MfBs)/ Primary Mortgage Banks (PMBs)

Managing Director/ Chief Executive Officer of NDIC, Mr. Bello Hassan said this in Abuja last week at the Corporation’s Special Day at the 18^th Abuja International Trade Fair.

According to him, 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.

He said, currently, the Corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks.

The banks are 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.

Speaking further, Mr. Hassan said that NDIC hold the strong view that knowledge is power, and believes that an informed depositor can make better financial decisions.

“I urge the public to be cautious of illegal fund managers, often referred to as ‘Wonder Banks’ or ‘Ponzi Schemes,’. These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many.

“It’s important to note that these wonder banks are neither licensed by the Central Bank of Nigeria (CBN) nor covered by the NDIC deposit insurance scheme. Members of the public are therefore advised to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country,” he said.

He said,  this year’s theme, “Sustainable Financing and Taxation as Drivers for the New Economy,” is especially relevant given the determination of government’s efforts towards achieving sustainable growth by strengthening the financial environment to boost economic growth.

“This falls in line with the Corporation’s contributions of ensuring the stability of the financial system by effectively complimenting the CBN in supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failures when it occurs.

“Indeed, Nigerian depositors are our priority and our foundation is built on ensuring the safety and security of their deposits.

“This ideal is encapsulated in our strap line; “Protecting your bank deposits!. This is crucial for financial inclusion because it gives Nigerians the assurance that their money is safe and accessible when needed. Furthermore, the Corporation’s activities through the supervision of banks, continuous monitoring and oversight serves as consumer protection for depositors which enhances confidence in the financial system.

“This acts as an incentive for the unbanked to access financial services of licensed banks. Ladies and gentlemen please permit me to reiterate the key mandate of the Corporation which is to provide deposit guarantee to depositors of insured financial institutions, bank supervision, distress resolution, and bank liquidation,” he said.

Speaking further, the NDIC boss maintained that over the years, the corporation have grown stronger in fulfilling these responsibilities and have significantly enhanced our public policy objectives of establishing a robust deposit insurance scheme in Nigeria.