Nigeria: NDIC Disburses N1.7 Billion to 42,000 Depositors of Failed Nigerian Banks

The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, has announced the disbursement of N1.7 billion to over 42,000 depositors affected by the closure of failed banks. He made this disclosure during the NDIC Editors’ Forum themed “Stocktaking of Deposit Insurance Practice: Assessing the Past, Evaluating the Present, and Forecasting the Future.”

Mr. Hassan urged depositors of the 183 closed microfinance and primary mortgage banks, who do not have Bank Verification Numbers (BVNs), to come forward and claim their insured deposits.

Speaking on the progress, Mr. Bello said, “Earlier this year in May, the Central Bank of Nigeria (CBN) revoked the licenses of 183 institutions comprising microfinance banks and primary mortgage banks, and we quickly advertised that the depositors of those institutions should come forward to get them verified so that we can pay them the insured amount.”

“In terms of the insured amount paid today, we have paid more than N1.7 billion to more than 42,000 customers, and we are calling on customers who had no BVN attached to their accounts in those microfinance banks to come forward and reach out to us at our offices across the six geopolitical zones so that they can get themselves verified, and we can pay the insured amount,” he explained.

Mr. Hassan highlighted the NDIC’s efforts in strengthening legal partnerships, resolving longstanding bank closure cases, and boosting depositor payouts through initiatives like the Single Customer View (SCV), judicial cooperation, and out-of-court settlements.

He further outlined the corporation’s achievements, including enhanced collaboration with the legal sector for faster prosecution and informed judgments on failed bank cases, improved public awareness on deposit insurance and financial literacy, invigorated liquidation activities, increased debt recovery rates, and improved transparency and accountability in operations.

The NDIC’s commitment to resolving cases and supporting affected depositors reflects its dedication to maintaining confidence in the banking system and protecting small depositors from fraud.