Nigerian Deposit Insurance Corporation (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 in insured sums to 535,815 depositors, as well as N101.666 billion in uninsured sums.

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

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

Deposit Guarantee, bank supervision, distress resolution, and bank liquidation are the four mandates of the NDIC, according to him, 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, paying a total of N11.76 billion in insured sums to 535, 815 depositors of closed banks, while a total of N101.666 billion in uninsured sums was paid as of 30 June 2021,” he said. In addition, 1,955 creditors and shareholders of closed banks received a total of N6.159 billion in liquidation dividends.”

The corporation has declared full payment of insured and uninsured sums to depositors of 18 in-liquidation banks, which is instructive.”

This means that the Corporation has realized a liquidation dividend that will be paid to all bank depositors who show up 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 has responded to financial system innovations by extending deposit insurance coverage to MFBS, PMBs, NIBs, and MMOs, as well as the recently licensed Payment service banks (PSBs) in order to engender confidence in the financial system.”

The NDIC boss urged Nigerians to remain vigilant and avoid inadvertently disclosing their ATM and account information, as well as patronizing Ponzi schemes and illegal fund managers who pose as deposit taking institutions.

Earlier, Mrs Aina Omo-Ojo, Managing Director of the Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), thanked NDIC for coming to the fair to educate the public on its operations and how to avoid losing their hard-earned money through banks.