NDIC says it paid naira 101 billion to depositors of failing banks – Nairametrics
As of June 30, 2021, the Nigeria Deposit Insurance Corporation (NDIC) had paid a total of 101.67 billion naira of uninsured sums to depositors of failed banks, according to Bello Hassan, managing director / managing director of the company.
Hassan made the announcement during the company’s special day at the 16th Abuja International Trade Fair, which took place yesterday, according to Daily Trust.
As provided for in the NDIC Act of 2006, when insured financial institutions go bankrupt, depositors of depository banks (DMB), interest-free banks (NIB), primary mortgage banks (PMB) and subscribers of money operators mobile (MMO) are reimbursed up to a maximum limit of 500,000.00 N, while the maximum insured coverage for depositors of Microfinance Bank (MFB) is 200,000.00 N.
What the NDIC says
Hassan, who was represented by corporate communications director Bashir Nuhu, revealed that the company had paid a cumulative amount of 11.76 billion naira as insured sums to 535,815 depositors.
In addition, a total of N 6.16 billion was paid as a liquidation dividend to 1,955 creditors and shareholders of closed banks.
Although the insured limits are regularly reviewed by the Board of Directors of the Company to ensure that the majority of depositors are covered, depositors whose balances exceed the insured amounts regularly receive liquidation dividends, which often extend to creditors and shareholders.
In order to strengthen confidence in the financial system, the Company has extended deposit insurance coverage to recently approved payment service banks (PSBs) to the tune of N 500,000 per depositor.
Hassan further disclosed that the Company declared full payment of insured and uninsured amounts to depositors of eighteen (18) banks in liquidation.
In case you missed it
NDIC announced earlier that it was ready to begin payment of liquidation dividends to uninsured depositors, creditors and shareholders of 14 additional banks in liquidation.