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Payment of liquidation dividends to depositors of failed banks ongoing – NDIC

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Payment of liquidation dividends to depositors of failed banks ongoing – NDIC

The Nigeria Deposit Insurance Corporation, NDIC, is currently paying liquidation dividends from depositors of banks whose licenses have been revoked by the Central Bank of Nigeria, CBN.

The chief executive of the company, Bello Hassan, said this in an interview on the sidelines of the Nigeria Financial Correspondents Association 2021, FICAN workshop on Friday in Ibadan.

“One of our mandates is also to liquidate approved depositories whose deposits have been revoked by the CBN.

“So you have various categories that are currently in liquidation, deposit banks (DMB), microfinance banks (MFB) and primary mortgage banks (PMB).

“As liquidator, what we do immediately in the event of license revocation is to pay the maximum insured amount.

“After that, we proceeded to recover the loans and advances granted by these institutions before the revocation and to realize the assets left behind so that we could pay them to the depositors.

“We only pay the maximum insured amount at the time of liquidation and then subsequently start paying the depositors and after that we finish but the payment is currently underway,” he said.

At a conference, Galadima Gana, director of NDIC’s insurance and oversight department, said the company has successfully closed 325 MFB, 50 PMB and 49 DMB whose licenses have been revoked by the CBN with a minimal diversified effect on stability and confidence in the banking sector.

He said NDIC has cumulatively paid 8.27 billion naira to insured depositors of DMB, 3.38 billion naira to insured depositors of MFB and 11 billion naira to insured depositors of PMB.

Mr. Gana representing respectively 60.71%, 46.94% and 18.10% of the sums insured.

He said the payment to uninsured depositors, creditors and shareholders of DMB totaled 100.85 billion naira, 1.27 billion naira and 4.83 billion naira, respectively.

This, he said, represents 51.07 percent, 73.13 percent and 92.81 percent of the respective amounts.

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