NDIC Disburses N1.393 Billion to 36,263 Depositors of 110 Failed MFBs and 3 PMBs

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The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, made a significant announcement during the NDIC special day at the 2023 Lagos International Trade Fair on Thursday, November 9, 2023. Represented by Bashir A. Nuhu, the Director of Communications and Public Affairs of the Corporation, the event highlighted the corporation’s commitment to the nation’s financial system and its pivotal role in ensuring growth and stability.

Under the theme “Connecting Business, Creating Value,” the Lagos Chamber of Commerce and Industry organized the trade fair, showcasing its consistent efforts to host the most significant trade fair exhibition on the African continent. For the NDIC, such events serve as a unique platform to exhibit achievements and enhance public awareness of its mandate and activities.

Hassan took the opportunity to remind attendees that the NDIC, established by the federal government, operates under the NDIC Act No. 33 of 2023, emphasizing its public policy objective of the Deposit Insurance Scheme (DIS) in Nigeria. This scheme aims to protect small depositors by providing a mechanism for reimbursement in the event of imminent or actual bank failures while promoting safe banking practices, contributing to an orderly payments system, and enhancing fair competition in the banking sector.

NDIC Boss noted that following the recent revocation of licenses of some microfinance banks (MFBs) and primary mortgage banks (PMBs) by the Central Bank of Nigeria (CBN), the NDIC promptly initiated the liquidation process and disbursed insured sums to depositors within an unprecedented three days of the banks’ closure. As of September 22, 2023, the corporation had disbursed a cumulative insured sum of N1.393 billion to 36,263 depositors of 110 closed MFBs and 3 PMBs. Importantly, payments are ongoing, and depositors with funds exceeding the insured limit will receive liquidation dividends after debt recovery and asset sales, he added.

Additionally, Hassan disclosed that the NDIC is in the process of varying and paying liquidation dividends to depositors of 20 banks in liquidation, including 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. Eligible parties are encouraged to visit the NDIC website for more information and to download verification forms, he stressed.

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In his words: The NDIC continues to collaborate with the CBN to ensure effective bank supervision, adherence to prudential thresholds, and corporate governance codes for banks, thereby safeguarding the safety and stability of the Nigerian banking system. The general public are urged to deposit their funds in licensed banks, avoiding wonder banks and ponzi schemes.

In its ongoing efforts to boost depositors’ confidence, the NDIC addresses genuine cases of infractions and complaints related to insured institutions. The corporation operates a 24-hour toll-free helpdesk line (080063424357) and an email (helpdesk@ndic.gov.ng) for depositors to inquire about the benefits and operations of the deposit insurance scheme in Nigeria.

The NDIC pavilion at the ongoing trade fair is open for visitors, where experienced staff are available to address inquiries. A dedicated helpdesk has been set up for depositors of ailed banks to find information on accessing their deposits and processing claims accordingly. For more information, visit the NDIC website or engage on social media platforms.

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