NDIC Pays N11.76bn to 535, 815 Depositors of Closed Banks

Adibe Emenyonu I Benin City

The Nigerian Depositors Insurance Corporation (NDIC) yesterday said it has paid a total of N11.76 billion as insured sum to 535,815 depositors, while N101.666 billion was also paid as uninsured sum from 1989 to June ,2021.

The Managing Director/, Chief Executive Officer, Mr. Bello Hassan, disclosed this in Benin City, Edo State at the ongoing Edo International Trade Fair.

Represented by the Corporation Senior Manager, Benin Zone, Mr. Udofor Ukpom, Hassan said since the establishment of NDIC in 1989 as a statutory agency of government with four broad mandates, it has been protecting depositors by providing an orderly means of resolution and reimbursement in the event of bank failures.

He listed the four mandates of NDIC as deposit Guarantee, bank supervision, distress resolution and bank liquidation, with the primary public policy objectives of contributing to financial system stability.

He said:”From inception till date, NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability and has paid cumulative amount of N11.76 billion as insured sums to 535, 815 depositors of closed banks while a total of N101.666 billion had been paid as uninsured sum as at 30 June, 2021. In addition, a total of N6.159 billion had been paid as liquidation dividend to 1,955 creditors and shareholders of closed banks.”

Instructively, the corporation has declared full payment of insured and uninsured sums to depositors of 18 banks in-liquidation.”

This implies that the Corporation has realized liiquidation dividend to pay all depositors of the banks who present themselves for payment.

“Likewise, NDIC has continued to strive for a sound, safe and stable financial system which is pivotal for sustainable economic growth and in that regard, has responded to innovations in the financial system by extending deposit insurance cover to MFBS, PMBs, NIBs and MMOs and also to the recently licensed Payment service banks (PSBs) in order to engender confidence in the financial system.”

The NDIC boss advised Nigerians to remain vigilant and not disclose their ATM details and account information inadvertently and also not patronise the services of Ponzi schemes and illegal fund managers, who parade themselves as deposit taking institutions.

Earlier, the Managing Director, of Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), Mrs Aina Omo-Ojo, thanked NDIC for coming to the fair to enlighten the public on its operations and also how to make sure that as business people they don’t lose their hard earned money through banks.