Nigeria Deposit Insurance Corporation (NDIC) has disbursed a cumulative insured N1.084 billion to 29,573 depositors as at September 22, this year.
The beneficiaries are 29,573 depositors of closed micro finance banks (MFBs) and primary mortgage banks (PMBs).
Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, during the NDIC day at the 18th Abuja International Trade Fair, explained that following the revocation of licences for 179 MFBs and four PMBs by the Central Bank of Nigeria (CBN), the corporation commenced liquidation of the banks and disbursing insured sum within seven days of the closures of these banks.
Hassan, who was represented by the Director Communication and Public Affairs Department, Bashir Nuhu, said: “It’s important to note that as at 22nd September 2023, the corporation had paid a cumulative insured sum of N1.084 billion to 29,573 depositors of the closed MFBs/PMBs.
“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.”
He also said NDIC is verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks.
“This is crucial for financial inclusion because it gives Nigerians the assurance that their money is safe and accessible when needed.”
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All these, he noted, were “part of the corporation’s contributions of ensuring the stability of the financial system by effectively complementing the CBN in supervising the banking sector and safeguarding depositors funds from the adverse effects of bank failures when it occurs.”
These also he stated are relevant given the determination of government’s effort towards achieving sustainable growth by strengthening the financial environment to boost economic growth.
He further emphasized that NDIC’s top priority is their depositors and the corporations foundation is built on ensuring the safety and security of their deposits.
Hassan declared also that “we at the NDIC hold the strong view that “Knowledge is Power”, and we believe that an informed depositor can make better financial decisions. I urge the public to be cautious of illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes.”
“These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many.
“It’s important to note that these ‘wonder banks’ are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme.
“Members of the public are therefore advised to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country.
