NDIC Pays N1.39bn To Failed Banks’ Depositors

The Nigeria Deposit Insursnce Corporation (NDIC) has paid N1.39 billion to 36,163 depositors of 110 closed Microfinance Banks (MFBs) and three Primary Mortgage Banks (PMBs). The Managing Director of NDIC, Mr Bello Hassan, made the disclosure at the NDIC Special Day, at the 2023 Lagos International Trade Fair in Lagos. The fair has the theme: “Connecting Businesses, Creating Value.” Hassan said the corporation promptly commenced the liquidation of these banks and began disbursing insured sums to depositors within a record time of three days of the banks’ closure. This, he said, followed the recent revocation of licenses of some MFBs and PMBs by the Central Bank of Nigeria. He said the payments of the statutory insured sums were still ongoing. Hassan explained that depositors with funds exceeding the insured limit would receive liquidation dividends after the recovery of debts and the sale of the closed banks’ physical assets. “In another development, the corporation is currently in the process of verifying and paying liquidation dividends to depositors and stakeholders 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,” he said. Hassan, represented by Mr Nuhu Bashir, Director, Corporate Communications, NDIC, urged the general public, especially traders and businessmen, to always ensure that their funds were saved in licensed banks. He advised them to avoid patronage of wonder banks and Ponzi schemes which always leave their victims with untold stories. The boss added that the corporation was actively working to investigate and resolve any wrong doing or complaints that it receives about insured banks. “The NDIC in its efforts to boost depositors’ confidence in the financial landscape has continued to address genuine cases of infractions and complaints in relation with their respective insured institutions. “In this regard, the corporation operates a 24-hour toll-free Helpdesk line (080063424357) and an email (helpdesk@ndic.gov.ng) for depositors to put forward their inquiries on the benefits and operations of Deposit Insurance Scheme in Nigeria,” he said. Earlier, the President of the Lagos Chamber of Commerce and Industry, Dr Michael Olawale-Cole, thanked the corporation for being a worthy partner of the LCCI over the years. Olawale-Cole, represented by Bimbo Olasore, the Vice Chairman, Trade Promotion Board, also congratulated NDIC for using its platform to reach out to bank depositors and showcased their products. “As you all are aware, the Lagos International Trade Fair is the biggest and the most vibrant fair in the whole of West Africa. So, it is a very useful platform for people to use and advertise their goods and services. “I’m very pleased in this case that NDIC is using it, in that if the customers are not coming to their offices, they will go to where the depositors are congregating. “I can assure you that you being here for the 10 days, that you would meet tens of thousands of depositors of NDIC. 

Liquidated MFBs/PMBs: NDIC Pays N1.08bn To 29,573 Depositors

The Nigeria Deposit Insurance Corporation (NDIC) has paid a cumulative insured sum of N1.084 billion to 29573 depositors of the closed Microfinance Banks/ Primary Mortgages Banks. The Managing Director, Bello Hassan who disclosed this in his speech at the NDIC Special Day at the ongoing 18th Abuja International Trade Fair 2023, said the 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 following the revocation of licenses for 179 Microfinance Banks and 4 Primary Mortgage Banks by the Central Bank of Nigeria (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. 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, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank. Urging  eligible parties to visit NDIC for more information and download verification forms   at,  www.ndic.gov.ng , 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, according to him, 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. Speaking further he said “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   need 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. “ He cautioned members of the public of illegal activities of fund managers often referred to as “wonder Banks or Ponzi Schemes. He said these entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many, noting that these “wonder banks” are neither licensed by the Central Bank of Nigeria   nor   covered   by   the   NDIC   deposit   insurance   scheme. He encouraged members   of   the   public   to   patronize   only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by the NDIC” in their   banking halls or entrances   and various branches across the country.

Banks, telcos settle USSD billing rift after N120bn debt

Telecommunications companies and Deposit Money Banks (DMBs) have resolved their disagreement over the debt rising from the billing of the Unstructured Supplementary Service Data (USSD). The banks were owing the network providers N120 billion from the use of the USSD platform, which is charged on a corporate billing rather than end-user billing as preferred by the DMBs. On Thursday, the Executive Vice Chairman of the Nigerian Communications Commission (NCC) Umar Danbatta, stated that the intervention of the Governor of the Central Bank of Nigeria (CBN), Fola Shonubi, led to the settlement. Speaking at the Telecom Executives and Regulators Forum (TERF) held in Lagos, Danbatta said Shonubi assisted in resolving the confrontation because he knows that without the telcos, the CBN’s financial inclusion programme would not have achieved about 70 per cent. According to the NCC chief, disagreement over the billing system led to the increase in the debt, “The USSD service is being provided to the banks, who in turn provide the service to their customers. The question was who should be paying for the service. “They wanted end-user billing, but we said the service is being provided to the banks, not to their customers. “The banks charge their customers for the service, and they are to pay the telcos in the form of corporate billing, which is neat. “Then along the way, there was a misunderstanding and the debt kept piling until it reached a humongous amount of over N100 billion. “Even at that, the service was still being provided to customers by the banks using the telecom infrastructure and the telcos were being paid nothing. This was despite the intervention of the immediate past Minister,” he noted. Revealing the reason the CBN and the banks came to an agreement with the telcos, Danbatta stated: “Digital financial inclusion index or penetration is currently about 70% because it is telco driven. “And as such, there shouldn’t be any problem paying for the service. No service is free. Pay the telcos, that’s all we ask. Okay, and as we’re saying, Now, pay them for the debt, the accumulated debt, and then pay them for the service they are rendering as we speak. “At a meeting between the acting CBN governor, the NCC, the telcos and the banks, it was acknowledged that the debt exists, that going forward, the service has to be paid for by the banks through corporate billing. “It is an important development for the telecoms industry that we have found an amicable resolution to the problem because we’re all serving the same government. We do not want to disrupt financial services in the country. “We want to see the financial inclusion penetration to even go higher. We want it to be ubiquitous, but we cannot do this without settling the legacy debt, as well as paying for the service that is being provided.”