NDIC pays depositors of failed MFBs and PMBs N1.084bn
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has disbursed a total insured sum of N1.084 billion to 29,573 depositors Micro Finance Banks (MFBs) and Primary Mortgage Banks (PMBs) as of September 22, 2023.
This information was shared by Mr. Bello Hassan, the Managing Director/Chief Executive Officer of NDIC, during the NDIC day at the 18th Abuja International Trade Fair, held under the theme “Sustainable Financing and Taxation As Drivers For The New Economy” in Abuja.
Mr. Hassan explained in his address that after the Central Bank of Nigeria (CBN) revoked the licenses of 179 Micro Finance Banks (MFBs) and four Primary Mortgage Banks (PMBs), NDIC promptly initiated the liquidation process and disbursed insured funds within seven days of the banks’ closure.
Mr. Hassan, represented by Bashir A. Nuhu, the Director of the Communication and Public Affairs Department, stated, “As of September 22, 2023, the Corporation had disbursed a cumulative insured sum of N1.084 billion to 29,573 depositors of the closed MFBs/PMBs.”
He added, “It’s worth noting that these payments are still ongoing, and depositors with funds exceeding the insured limit will receive liquidation dividends after the recovery of debts and the sale of physical assets from the closed banks.”
Hassan also mentioned that NDIC is currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 other closed banks.
He emphasized the significance of these actions for financial inclusion, assuring Nigerians that their money is secure and accessible when needed.
Hassan highlighted NDIC’s commitment to ensuring the stability of the financial system, complementing the CBN in supervising the banking sector, and safeguarding depositors’ funds from the adverse impacts of bank failures.
He stressed that these efforts align with the government’s goal of achieving sustainable economic growth by enhancing the financial environment.
Furthermore, Mr. Hassan emphasized NDIC’s primary focus on depositors and its commitment to ensuring the safety and security of their deposits.
He issued a warning about illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes,” which promise unrealistically high returns and lead to significant losses for investors.
Hassan advised the public to be cautious and only transact with licensed banking institutions displaying NDIC Stickers with the words “Insured by NDIC” in their banking halls, entrances, and branches across the country.
