By 
Mr. Bello Hassan, the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), has revealed that the organization has disbursed approximately N1.08 billion to 29,573 depositors affected by the recent closures of Microfinance Banks and Primary Mortgage Banks.
During his speech at the 18th Abuja International Trade Fair, Hassan emphasized that the disbursement process is still ongoing. He explained that depositors holding funds exceeding the insured limit would receive liquidation dividends once the debts are recovered, and the physical assets of the closed banks are sold.
Hassan stated, “Following the revocation of licenses for 179 Microfinance Banks and four Primary Mortgage Banks by the Central Bank of Nigeria, the NDIC promptly initiated the liquidation process and commenced the disbursement of insured amounts to depositors within just seven days of the banks’ closure.
As of September 22, 2023, the Corporation had disbursed a cumulative insured amount of N1.084 billion to 29,573 depositors affected by the closure of these Microfinance Banks and Primary Mortgage Banks.
It is important to note that the disbursement process is ongoing, and depositors with funds exceeding the insured limit will receive liquidation dividends once the debts are recovered, and the physical assets of the closed banks are sold.”
Hassan stressed that the Nigerian depositors’ welfare remains a top priority for the NDIC. Currently, the Corporation is in the process of verifying and disbursing liquidation dividends to depositors and stakeholders of 20 other closed banks. These banks include Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank, and Merchant Bank.
He also cautioned depositors against engaging with illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes,” which offer unrealistically high interest rates and profits. Such activities can lead to substantial financial losses for individuals.
Furthermore, the NDIC clarified that the Deposit Insurance Scheme does not cover deposits belonging to directors and staff of defunct banks.
Comments