Nigeria: NDIC begins process of paying depositors of 3 failed microfinance banks

The Nigeria Deposit Insurance Corporation (NDIC) has begun the process of paying depositors in 3 failed micro-finance banks.

The NDIC will between May 9 and May 20, begin the claims verification of depositors of the three Micro-finance Banks (MFBs) whose licenses were withdrawn by the Central Bank of Nigeria. The NDIC announced this on its official Twitter account and website.

Gufax MFB and Sapphire MFB, both in Uyo, Akwa Ibom State, and ICB MFB, in Asaba, Delta State, were among the banks identified by the NDIC.

What the NDIC is saying

The Corporation urged affected depositors to go to the closed banks’ addresses and meet with NDIC personnel to get their claims verified.

NDIC said, “We, therefore, advise that all depositors of these banks should visit the closed banks’ addresses and meet with NDIC officials for the verification of their claims, commencing from Monday, 9th May 2022 till Friday, 20th May 2022.”

The NDIC also advised eligible depositors to visit www.ndic.gov.ng/claims/ to download and complete the claims form.

It stated that completed forms should be forwarded to claimscomplaints@ndic.gov.ng, along with scanned copies of supporting documentation.

”NDIC, the official liquidator of the underlisted defunct Microfinance Banks (MFBs) whose licences were revoked, is in the process of paying insured depositors.

”Depositors of ICB MFB should come forward for verification and payment of their insured deposits at the premises of the closed bank from May 9 to 20, 2022,” the Corporation said.

What you should know

• The Nigeria Deposit Insurance Corporation (NDIC) has said that its Deposit Insurance Scheme (DIS) does not cover insider deposits made by bank directors and employees.
• This is to incentivize those who are affected to manage their financial institutions safely and soundly while also ensuring good corporate governance practices.
• The Nigeria Deposit Insurance Corporation (NDIC) stated that over 97 per cent of depositors at deposit money banks (DMBs) in the country would be completely protected by the N500,000 Maximum Insured Limit.
• The total number of accounts in deposit money banks in 2016, 2017, 2018, and 2019 was 83.0 million, 99.1 million, 112.0 million, and 128.4 million, respectively, with the NDIC’s N500,000 Maximum Insured Limit (MIL) fully covering 99.4%, 97.6 %, 97.5%, and 97.6% of accounts, respectively.
• As of June 30, 2021, the Nigeria Deposit Insurance Corporation (NDIC) had paid a total of N101.67 billion in uninsured sums to depositors of failed banks.