NDIC to Pay 100% Liquidation Dividend to Depositors of 20 Failed Banks

Gideon Arinze in Enugu

The Nigeria Deposit Insurance Corporation (NDIC) has said it would pay 100 percent liquidation dividends to depositors of 20 previously failed banks across the country.

The Managing Director/Chief Executive of NDIC, Mr. Bello Hassan, made this known yesterday during the agency’s special day at the ongoing 36th Enugu International Trade Fair.

In his address, Hassan said the cooperation has since commenced preparations to pay the first tranche of liquidation dividends this month.

Hassan, who was represented by the South East Zonal Coordinator of NDIC Pamela Robert, said the NDIC remains committed to ensuring a stable financial environment that safeguards depositors and builds public confidence, enabling businesses to thrive and contribute to the nation’s economic development.

He clarified that, in accordance with their statutory mandate, the NDIC as a liquidator, was responsible for winding down the affairs of the failed bank, reimbursing insured depositors, recovering debts owed to the bank, and realising its assets for the payment of depositors and other claimants.

He maintained that the corporation remains dedicated to protecting bank deposits from the adverse effects of bank failures.

“A recent example is the revocation of Heritage Bank’s operating license by the Central Bank of Nigeria (CBN) on June 3, 2024,” he said.

“In line with its statutory mandate, the Corporation immediately began the liquidation process, including verification and payment of insured deposits of up to a maximum of N5 million per depositor within four days.”

He noted that the swift action has enabled the payment of insured amounts to the majority of the bank’s depositors using their Bank Verification Numbers (BVN) as a unique identifier to locate their alternate accounts for payment.