Payment of liquidation dividends to depositors of pending bankrupt banks – NDIC – The Sun Nigeria
The Nigeria Deposit Insurance Corporation (NDIC) is currently paying liquidation dividends from depositors of banks whose licenses have been revoked by the Central Bank of Nigeria (CBN).
The chief executive of the company, Mr. Bello Hassan, said this in an interview on the sidelines of the 2021 workshop of the Association of Financial Correspondents of Nigeria (FICAN) on Friday in Ibadan.
“One of our mandates is also to liquidate approved depositories whose deposits have been revoked by the CBN.
“So you have different categories that are currently in liquidation, deposit banks (DMB), microfinance banks (MFB) and primary mortgage banks (PMB).
“As liquidator, what we do immediately in the event of a license revocation is to pay the maximum insured amount.
“After that, we proceeded with the recovery of the loans and advances granted by these institutions before the revocation and the realization of the assets left behind so that we could pay them to the depositors.
“We only pay the maximum insured amount at the time of liquidation, and then afterwards start paying the depositors and after that we liquidate, but the payment is currently underway,” he said.
During a conference, Mr. Galadima Gana, director of the insurance and supervision department of NDIC, said that the company has successfully closed 325 MFB, 50 PMB and 49 DMB whose licenses have been revoked by the CBN with minimal diversified effect on stability and confidence in the banking sector.
He said the NDIC has cumulatively paid 8.27 billion naira to insured depositors of DMB, 3.38 billion naira to insured depositors of MFB and 11 billion naira to insured depositors of PMB.
Gana representing respectively 60.71 per cent, 46.94 per cent and 18.10 per cent of the amounts insured.
He said the payment to uninsured depositors, creditors and shareholders of DMB totaled 100.85 billion naira, 1.27 billion naira and 4.83 billion naira, respectively.
This, he said, represents 51.07 percent, 73.13 percent and 92.81 percent of the respective amounts. (NAA)