NDIC Pays N1.084Bn To Depositors Of Closed Microfinance, Primary Mortgage Banks


NDIC’s Managing Director/Chief Executive Officer, Hassan Bello

By Miriam Humbe

As at September 22, 2023, the Nigeria Deposit Insurance Corporation (NDIC), had paid a cumulative insured sum of 1.084 billion Naira to 29,573 depositors of the closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) in the country.

Managing Director/Chief Executive Officer of the NDIC, Mr. Hassan Bello said this on Thursday at the Special Day of Corporation at the ongoing 18th Abuja International Trade Fair.

The NDIC’s boss was represented at the event by the Director, Communication and Public Affairs, Bashir A. Nuhu.

This year’s event was themed: “Sustainable Financing and Taxation as Drivers for the New Economy”.

The MD said that the theme was relevant in view of government’s determination and efforts towards achieving sustainable growth by strengthening the financial environment to boost economic growth.

Bello said the theme also: “Falls in line with the Corporation’s contributions of ensuring the stability of the financial system by effectively complimenting the CBN in supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failures when it occurs”.

NDIC’s Managing Director said that the Corporation was in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks.

The banks mentioned were: Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North-South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank, and Merchant Bank.


NDIC’s pavilion at the 18th Abuja Trade Fair 2023

Bello therefore urged eligible parties to visit the Corporation’s website for more information and download verification forms.

The NDIC boss said that following the revocation of licenses for 179 MFBs and 4 PMBs by the Central Bank of Nigeria (CBN), the Corporation commenced liquidation of the banks and began disbursing insured sums to depositors within just seven days of the closure of the banks.

He said that payments were still ongoing and depositors with funds exceeding the insured limit would receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.

He urged the public to be wary of illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes.”

Bello said: “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 CBN 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”.

He encouraged the participants at the event to visit the NDIC pavilion where its experienced staff were on ground to address inquiries and also clarify issues about the operations of the deposit insurance.

He said: “A Helpdesk has also been set up at the stand where depositors of failed banks can find out where and how to access their deposits as well as process their claims”.

The President, Abuja Chamber of Commerce, Industry, Mines, and Agriculture (ABUCCIMA), Dr. Al-Mujtaba Abubakar lauded the NDIC for its contribution to financial system stability in the country.

He was represented by the Director, Finance and Administration, ABUCCIMA, Dr. Nurudeen Adekola.

The ABUCCIMA President assured of the Chamber’s unflinching support to the NDIC in hosting its Special Day at the Trade Fair to enlighten Nigerians on ways to save money and protect it from illegal fund Managers.

The NDIC’s Assistant Director, Media Relations, Mrs. Hawwau Gambo thanked the ABUCCIMA for the continuous support towards the hosting of the NDIC Day.

She also thanked the media for the wide coverage of the event.


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