NDIC achieves 100 percent liquidation of 20 Banks

The Nigerian Deposit Insurance Corporation says it has achieved 100 percent liquidation of 20 out of the 49 Deposit Money Banks that are closed down.

The managing Director of the Corporation, Mr. Bello Hassan, who disclosed this at the 2022 Finsncial Correspondents Association of Nigeria workshop in Portharcort, Rivers State, said that the Corporation has realised enough funds from their assets to fully pay all depositors of the listed banks.

“The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks inliquidation. The liquidation activities, as at June 30, 2022, covered a total of 467 insured financial institutions in-liquidation, comprising of 49 DMBs, 367 MFBs, and 51 PMBs.

“As at June 2022, the NDIC had cumulatively paid ₦11.83 billion to over 443,949 insured depositors and over ₦101.37 billion to uninsured depositors of all categories of banks in-liquidation.

“It is most profound for me to say that, out of the 49 DMBs in-liquidation, the Corporation in September, 2022 declared 100 per cent liquidation dividend in 20 of those institutions, meaning that the Corporation has realized enough funds from their assets to fully pay all depositors of the listed banks.“

The NDIC boss explained that as at June 30, 2022, the Commission had provided deposit insurance coverage to a total of 981 insured financial institutions.

“The breakdown includes: thirty-three (33) DMBs made up of Twenty-Four (24) Commercial Banks, Six (6) Merchant Banks and Three (3) Non-Interest Banks (NIBs) plus Two (2) Non-Interest Windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); Three (3) Payment Service Banks (PSBs) and 29 Mobile Money Operators.”

While highlighting that the global banking landscape has always been faced with challenges, which is being heightened by technology innovations, Mr. Hassan reiterated that regulators and supervisors in the sector are collaborating to enhance surveillance to deliver services that would boost Depositors’ Confidence Amidst Emerging Issues and Challenges in the Banking System.