NDIC declares 100% liquidation dividend in 20 failed banks

Date:

The Nigeria Deposit Insurance Corporation (NDIC), on Monday, said it declared a 100 per cent liquidation dividend in 20 liquidated banks as at September, in its desire to ensure quicker and orderly resolutions of liquidated insured institutions.

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The Corporation further disclosed that it had cumulatively paid N11.83 billion to over 443,949 insured depositors and over N101.37 billion to uninsured depositors of all categories of banks in-liquidation as at June 2022.

The Managing Director of NDIC, Mr Bello Hassan, made the disclosure at the 2022 edition of the Financial Correspondents and Business Editors’ Workshop in Port Harcourt themed; Boosting Depositors’ Confidence Amidst Emerging Issues and Challenges in the Banking Industry”.

According to Hassan, the Corporation has pooled a cocktail of strategies designed to boost service delivery.

He noted that the NDIC has provided deposit insurance coverage to 981 insured financial institutions.

He explained that the NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in-liquidation.

“The liquidation activities, as at June 30, 2022, covered a total of 467 insured financial institutions in-liquidation, comprising of 49 DMBs, 367 microfinance banks (MFBs) and 51 primary mortgage banks (PMBs)

“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 it has realised enough funds from their assets to fully pay all depositors of the listed banks”, Hassan revealed.

The NDIC boss further stated that the Single Customer View (SCV) platform for MFBs and PMBs has been developed and deployed in order to strengthen the corporation’s processes and procedures for data collection.

The platform, he noted, will eliminate delays often experienced in reimbursing depositors following revocation of institutions’ licenses by the Central Bank of Nigeria (CBN).

He added that the final phase of the implementation of the SCV for DMBs will be achieved through the incorporation of the SCV template as part of the ongoing Integrated Regulatory Solution (IRS) jointly being developed with the CBN.

In the area of consumer protection, the NDIC boss said the complaints resolution platforms, which include the toll-free help desk, social media handles and complaints desks in the bank examination, special insured institutions and claims resolutions departments, as well as the zonal offices, have been strengthened to receive and process complaints from depositors seamlessly.

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