"N500k/Person": List Emerges as NDIC is Set to Pay Depositors of 20 Failed Banks N16.18bn Dividends

"N500k/Person": List Emerges as NDIC is Set to Pay Depositors of 20 Failed Banks N16.18bn Dividends

  • The Managing Director of NDIC, Bello Hassan, said the corporation is ready to begin payment of liquidation dividends to depositors in 20 failed banks
  • He said the corporation had earmarked N16.18 billion to offset the liquidation dividends of the depositors
  • Hassan revealed that the depositors have been asked to present themselves for verification and disbursement

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to complete liquidation payments amounting to N16.18 billion for depositors of the 20 failed banks.

The NDIC had already asked depositors to come for verification and disbursement of insured deposits exceeding the guaranteed sums, referred to as liquidation dividends.

NDIC, deposits, banks
NDIC to disburse N16.18 billion depositors of 20 failed banks Credit: @ndic
Source: UGC

NDIC to make payments when banks' assets are sold

The Managing Director of the corporation, Bello Hassan, disclosed this at the NDIC Day at the ongoing 44th Kano International Trade Fair in Kano.

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Haasan said the payments are ongoing, and depositors holding funds beyond the norm would be entitled to liquidation dividends immediately after the debts are recovered, and the physical assets of the banks are closed and sold.

According to reports, Hassan stressed the importance of recognizing that in the event of a bank failure, the insurance coverage for depositors differs among banking institutions.

Bello said:

“It is important to note that the NDIC has paid N1.5 billion to 41,034 depositors of 129 MFBs and PMBs out of these.”
“While depositors of Deposit Money Banks, Primary Mortgage Banks, Non-Interest Banks, Payment Service Banks, and subscribers of Mobile Money Operators are insured up to a maximum limit of N500,000 per depositor per bank, for depositors of Microfinance Banks, the maximum insurance Limit stands at N200,000 per depositor per bank.”

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The NDIC boss promised that the corporation would continue collaborating with the Central Bank of Nigeria (CBN) to supervise banks effectively and uphold the procedures, guidelines, and the Code of Corporate Governance for banks.

NDIC lists 20 failed banks, and asks depositors to come for their money as CBN restores one license

Legit.ng reported that Depositors, creditors, and shareholders of 20 failed banks in Nigeria will get an additional N16.18 billion in liquidation dividends, the Nigeria Deposit Insurance Corporation (NDIC) said.

The latest payment will increase dividends paid to the depositors to N61,63 billion after making cumulative payments of liquidation dividends totaling N45,45 billion as of July 2023, representing amounts exceeding the insured sums to depositors of the 20 banks.

According to NDIC Director of Communications and Public Affairs, Bashir Nuhu, the 20 failed banks were among the banks that had shut down previously due to the revocation of their operating licenses by the Central Bank of Nigeria (CBN) between 1994 and 2018.

Source: Legit.ng

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