Members of the public have been advised to patronise only banking institutions with a display of the Nigerian Deposit Insurance Corporation (NDIC) Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country.
The NDIC says it has paid a cumulative insured sum of N1.084 billion naira to 29,573 depositors of closed Microfinance Banks and 4 Primary Mortgage Banks as of September 22nd 2023.
The Managing Director of the Corporation, Bello Hassan, made the revelation while addressing the press during the NDIC Special Day event at the ongoing 18th Abuja International Trade Fair.
Mr Hassan explained that the NDIC commenced the payment of the cumulative insured sums to depositors following the revocation of licences for 179 MFBs and PMBs by the Central Bank of Nigeria, (CBN).
He informed that while payments are still ongoing, depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.
“Recently, following the revocation of licences for 179 Microfinance Banks and four Primary Mortgage Banks by the Central Bank of Nigeria, the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks.
“It’s important to note that as at 22nd September 2023, the Corporation had paid a cumulative insured sum of N1.084bn to 29,573 depositors of the closed MFBs/MPBs.
“It is however instructive to let you know that payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.”
The NDIC boss reiterated that the Corporation’s activities of supervising banks, plus its monitoring and overseeing activities, serve as a consumer protection mechanism for depositors adding that the Corporation is also currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 other closed banks.
“Currently, the corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks: They are 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 added
Mr Hassan advised the general public to be aware of illegal fund managers, Wonder Banks and Ponzi Schemes, not insured by the NDIC.
He said, ”These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many. It is important to note that these wonder banks are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme.”
