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.
NDIC assures depositors of 182 closed MfBs, PMBs speedy payment
The Nigeria Deposit Insurance Corporation (NDIC) has assured depositors affected by the recent revocation of the licenses of 178 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria (CBN) of speedy payment of their insured deposits. The Managing Director of NDIC Mr. Bello Hassan gave the assurance during a three-day capacity-building workshop for management staff of the corporation at the weekend in Ikot Ekpene, Akwa Ibom state. The event had as its theme: ‘Result Based Procurement: A Strategic Approach’ was organized by the Corporation in collaboration with the Bureau of Public Procurement (BPP). The Managing Director represented by the Executive Director, Operation, Mr Mustapha Ibrahim stressed that the Corporation would not compromise standards as it would also ensure that depositors get their money promptly to prevent a panic situation. Hassan stated that NDIC would continue to strengthen the financial system to appropriately support the economic advancement of the nation and also contribute meaningfully to financial system stability. “It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation (NDIC) continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a Deposit Insurer; others being; the prudential regulation & supervision, failure resolution, deposit insurance and lender of last resort function of the Central Bank of Nigeria (CBN). These components continue to safeguard the safety and soundness of the banking system as well as promote financial stability. “Following the recent revocation of the licenses of 178 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) has since commenced the liquidation exercise with the main purpose of paying the guaranteed sum, recovery of debts owed the banks, sale of physical assets and payment of liquidation dividend on the uninsured sum. “The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums,” he added Hassan expressed delight at the collaboration and training of procurement staff by BPP saying it has helped to conserve funds, block leakages, and enhance healthy competition and transparency. In his remark, the Director-General of BPP, Mr. Mamman Ahmadu cautioned that any public procurement without plans and records is tantamount to criminality. Ahmadu, represented by the Director, Research and Development/ICT, Mr. Aliyu Aliyu assured that the agency will continue to collaborate with NDIC to ensure smooth sailing on its procurement activities.