- NDIC is set to commence payments of N16 billion to customers whose funds have been stuck in 20 failed banks
- This move will come as a welcome relief to affected customers who, over the years, have been trying to get back their money
- The wait to get their funds back dates back as far as 29 years ago; for example, the Financial Merchant Bank closed in 1994
The Nigeria Deposit Insurance Corporation (NDIC) will pay over N16 billion as a liquidation dividend to depositors, creditors, and shareholders of 20 failed banks.
The failed banks have been in liquidation, some as far back as 1994 (29 years ago).
This was disclosed in a statement by Bashir Nuhu, the Director of Communication and Public Affairs of NDIC in Abuja, on Monday, October 2, 2023.
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According to the Nuhu, the declaration followed impressive recoveries from debtors and the realisation of the banks' assets in liquidation.
He said the Corporation had commenced verification and payment of stakeholders covered by the declarations within 30 days, which started on September 28, Guardian reports.
NDIC statement reads:
”It is instructive to note that the ongoing payment is sequel to earlier payment of various sums which cumulatively amounted to N45.45 billion as liquidation dividends in respect of the 20 banks as at July.
”Relevant stakeholders have been requested to visit any of the NDIC’s offices closer to them or go to the claims page on the Corporation’s website."
Nuhu also explained that the liquidation dividend represents a surplus amount paid by the NDIC to depositors of a closed bank, exceeding the insured sums.
The list of banks and year of closure
In an earlier report, Legit.ng, over the past 28 years, at least 45 commercial and merchant banks have ceased operations.
Here are the 20 banks selected by NDIC for payment and year of closure.
- Liberty Bank- January 16, 2006
- City Express Bank- January 16, 2006
- Assurance Bank- January 16, 2006
- Century Bank- January 16, 1998
- Allied Bank- January 16, 1998
- Financial Merchant Bank- January 21, 1994
- Icon Merchant Bank- January 16, 1998
- Progress Bank- January 16, 1998
- Merchant Bank of Africa (MBA)- January 16, 1998
- Premier Commercial Bank- December 22, 2000
- North South Bank- January 16, 1998
- Prime Merchant Bank- January 16, 1998
- Commercial Trust Bank- January 16, 1998
- Cooperative and Commerce Bank
- Rims Merchant Bank- December 22, 2000
- Pan African Bank- January 16, 1998
- Fortune Bank
- All States Trust Bank- January 16, 1998
- Nigeria Merchant Bank- January 16, 1998
- Amicable Bank- January 16, 1998
Checks showed that Ecobank acquired All States Trust Bank and its over 32,000 depositors who became part of Ecobank's customer base.
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Meanwhile, in another report, Legit revealed the list of commercial banks with the highest customer loans in the first six months of 2023.
Access Bank led the table with over N6 trillion in customer loans, followed by First Bank and United Bank of Africa.
The Central Bank of Nigeria mandates banks to loan at least 65% of deposits in their possession.