The Nigeria Deposit Insurance Corporation (NDIC) has said that depositors of 20 fully liquidated banks will now be paid their insured deposits.
Speaking yesterday during the NDIC Special Day at the ongoing Lagos International Trade Fair, NDIC Managing Director, Bello Hassan, disclosed that depositors of commercial banks, Payment Service Banks and subscribers of Mobile Money Operators (MMOs) are currently insured up to maximum limit of N500,000 per depositor per bank while those of microfinance banks are guaranteed up to a maximum limit of N200,000 per depositor per bank.
He listed the affected banks as ABC Merchant Bank Limited, Allied Bank of Nigeria: Alpha Merchant Bank Plc; Amicable Bank of Nigeria Limited, Commerce Bank, Commercial Trust Bank Limited, Continental Merchant Bank Plc and Cooperative & Commerce Bank Plc.
Others are Eagle Bank, Financial Merchant Bank Limited, Icon Limited (Merchant Bank): Ivory Merchant Bank, Kapital Merchant Bank Limited, Mercantile Bank of Nigeria Plc., Merchant Bank of Africa Limited, Nigeria Merchant Bank Plc., Pan African Bank Limited, Premier Commercial Bank Limited, Progress Bank of Nigeria; and Rims Merchant Bank Limited.
He said that the implication of this is that, through our dogged liquidation efforts, the Corporation has realised enough funds to fully pay all depositors of the listed banks. Similar notices were also sent to creditors of seven DMBS in-liquidation as well as depositors and ex-staff of Eurobank Savings & Loans, Okporo MFB and Eurofield MFB.
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Hassan, who was represented by NDIC Director, Bashir Nuhu, explained that while the insured limits are periodically reviewed by the Board of the Corporation to ensure that majority of depositors are covered, it is important to add that depositors who have balances in excess of the insured sums are regularly paid the excess as liquidation dividends, which often extends to creditors and shareholders of the banks.
He said the essence of the corporation’s participation in the Lagos International Trade For over the years, is to continuously sensitize the banking community and general public about the existence of the Deposit Insurance Scheme (DIS) and the measure of safety offers to the financial system.
“This is important since public confidence in the Snancial system can only be enhanced when they are aware that their deposits are protected and that in the unlikely event of bank failure, there is an agency of government that would always safeguard their hard earned savings,” he said.
He said the corporation protects depositors through the discharge of its mandate in four critical ways by insuring depositors’ funds and guaranteeing payment in the event of bank failure by supervising the banks in conjunction with the Central Bank of Nigeria (CBN) to ensure that they comply with extant laws and regulations; by resolving distress to reduce incidents of failure; and by ensuring orderly liquidation of failed banks to prevent disruptions to the payment system.
From its establishment till date, the corporation has been effective and efficient in the discharge if this mandate thereby, living up to its public policy objectives of contributing to financial system stability.
“The Corporation has recorded significant achievements in the area of bank liquidation. Depositors of 20 closed banks are to come forward for verification and payment of their deposits that are in excess of the guaranteed sums, otherwise called “liquidation dividends,” it said.