The NDIC Has Paid N11.76 Billion To 535, 815 Depositors Of Closed Banks

From 1989 to June 20, 2021, the Nigerian Depositors Insurance Corporation (NDIC) paid a total of N11.76 billion as insured sum to 535,815 depositors, while N101.666 billion was also paid as uninsured sum.

Mr. Bello Hassan, Managing Director/CEO, made the announcement at the ongoing Edo International Trade Fair in Benin City, Edo State.

Hassan, who was represented by the Corporation Senior Manager, Benin Zone, Mr. Udofor Ukpom, stated that the NDIC has been protecting depositors since its inception in 1989 as a statutory agency of government with four broad mandates, by providing an orderly means of resolution and reimbursement in the event of bank failures.

He outlined the NDIC’s four missions as deposit guarantee, bank supervision, distress resolution, and bank liquidation, with the primary public policy goal of contributing to financial system stability.

“From inception to date, NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability, and has paid a total 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 sums as at 30 June, 2021,” he said. In addition, a total of N6.159 billion in liquidation dividends had been paid to 1,955 creditors and stockholders of collapsed institutions.”

Instructively, the organization has proclaimed complete payment of insured and uninsured funds to depositors of 18 insolvent banks.”

This signifies that the Corporation has realized a liquidation dividend in order to compensate all bank depositors who show themselves for payment.

“Similarly, NDIC has continued to strive for a sound, safe, and stable financial system, which is critical for long-term economic growth, and in that regard, has responded to financial system innovations by extending deposit insurance cover to MFBS, PMBs, NIBs, and MMOs, as well as the recently licensed Payment service banks (PSBs) in order to instill confidence in the financial system.”

The NDIC boss warned Nigerians to be cautious and avoid mistakenly disclosing their ATM details and account information, as well as to avoid using the services of Ponzi schemes and illicit fund managers who pose as deposit accepting organizations.

Earlier, Mrs Aina Omo-Ojo, Managing Director of Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), praised NDIC for coming to the fair to educate the public on its operations and also how to ensure that as business people, they do not lose their hard-earned money through banks.