The Nigeria Deposit Insurance Corporation (NDIC) has announced its readiness to carry out full liquidation dividend payments totalling N16.18 billion for depositors of 20 failed banks.
The corporation has already urged depositors to present themselves for verification and the disbursement of deposits exceeding the guaranteed sums, commonly referred to as “liquidation dividends.”
Mr. Bello Hassan, the NDIC Managing Director, revealed this information at the NDIC Day during the ongoing 44th Kano International Trade Fair in Kano.
He mentioned that the payments are currently in progress, and depositors holding funds beyond the norm will be entitled to liquidation dividends once debts are recovered and the physical assets of the closed banks are sold.
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The managing director emphasized the importance of recognizing that in the unfortunate circumstance of a bank failure, the insurance coverage for depositors differs among various banking institutions.
What he said,
- “It is important to note that out of these, the NDIC has paid N1.5 billion to 41,034 depositors of 129 MFBs and PMBs,”
- “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.”
- “These insured limits undergo process reviews by the Board of the Corporation, ensuring comprehensive coverage for the majority of depositors.”
- “Furthermore, depositors holding licenses exceeding the insured sums receive regular payments of the excess in the form of liquidation dividends, that also extends to the benefit of creditors and shareholders of the respective banks,”
Collaboration with CBN
He promised that the NDIC would persist in its collaboration with the Central Bank of Nigeria to oversee banks effectively and uphold adherence to procedures, guidelines, and the Code of Corporate Governance for banks.
He urged the public to consistently secure their funds in licensed banks rather than keeping them at home or in shops.