NDIC States True Position of 20 Liquidated of Banks
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has refuted misleading reports suggesting that the Central Bank of Nigeria (CBN) recently liquidated 20 banks.
The clarification was made through a press release issued and signed by the Director, Communication and Public Affairs the f the NDIC Bashir Nuhu on Monday.
The Corporation emphasized that these banks were closed earlier, between 1994 and 2018, due to the revocation of their operating licenses by the CBN.
The statement went to reiterate that “the NDIC has fulfilled its commitment by paying the guaranteed sums owed to depositorsvof these liquidated banks.
Additionally, the Corporation said it “has made cumulative payments of liquidation dividends totalling N45.45 billion as of July 2023, representing amounts exceeding the guaranteed sums to depositors of the 20 banks”.
“In light of further recoveries from debtors of the liquidated banks, the Corporation has announced an additional N16.18 billion in liquidation dividends to be paid to depositors, creditors, and shareholders of the 20 banks in liquidation” the statement read.
The NDIC urged relevant stakeholders to visit any NDIC office or access the claims page on their website, www.ndic.gov.ng, to download, complete, and submit the verification form along with the prescribed supporting documents. Submissions should be sent to the dedicated email: claimscomplaints@ndic.gov.ng.
The closed banks covered by this exercise include Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North South Bank, and Prime Merchant Bank. Others are Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank in-liquidation.
Liquidation dividend represents the amount in excess of the insured sums paid by the NDIC to depositors of a closed bank.
This amount is derived from recoveries made from the realization of assets of failed financial institutions and covers payments to creditors and shareholders after the full payment to depositors of the defunct bank.
