“Keep Vital Records and Papers”: NDIC Speaks on Liquidating Another Nigerian Bank
- The Nigeria Deposit Insurance Corporation has said that it is not liquidating Savannah Bank operational in the country
- According to the corporation, Savanna Bank's license has been returned after it was withdrawn by CBN years ago
- It stated that these efforts have significantly improved its debt recovery rate from more than 20 deposit banks
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Nigeria Deposit Insurance Corporation (NDIC) has clarified that Savannah Bank is not liquidated.
It, therefore, urged bank depositors to keep their account documents, as their bank is still licensed.
Source: UGC
Speaking during the Corporation's Special Day at the 45th Kaduna International Trade Fair, which is currently taking place in Kaduna state, Bello Hassan, the Managing Director of NDIC, made this revelation.
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Hassan was represented by the Deputy Director of Public Affairs, NDIC, Hauwa Gambo Jimeta, according to a The Nation report.
Hassan said:
“Savannah Bank’s license was withdrawn some years back by the Central Bank of Nigeria, but the owners of the Bank took NDIC and CBN to court, and the license was returned to Savannah Bank. So, at the moment, Savannah Bank is officially licensed but has yet to return to business.
“I know that the authorities are working so hard to safeguard depositors' interests. So, depositors of Savannah Bank should please keep their vital records and papers, proof of accounts and all that, because Savannah Bank is still licensed,”
He said the corporation had improved its cooperation with the legal system to expedite the prosecution of failure-insured institutions.
According to him, the long-running bank closure issues, including those of Fortune and Triumph Banks in liquidation, have been resolved due to this coordinated effort.
He also said that the corporation has utilised the Alternative Dispute Resolution (ADR) mechanisms and out-of-court settlements in revitalising its liquidation activities.
According to the deputy director, these efforts have significantly improved its debt recovery rate, enabling the NDIC to declare 100% liquidation dividends to uninsured depositors of more than 20 deposit money banks in liquidation.
He said it has continually strengthened its systems, processes, and procedures to enhance transparency and accountability across our operations.
According to the corporation, it achieved remarkable success in reimbursing depositors during the recent closure of 179 Microfinance Banks (MFBs) and 4 Primary Mortgage Banks (PMBs) and ensuring timely payment of insured sums.
He said:
“We also deployed digital remote payment strategies to facilitate electronic funds transfers to verified depositors’ alternate bank accounts. It is essential to emphasise that payments are ongoing, with depositors holding funds exceeding the insured limit set to receive liquidation dividends following debt recovery and asset sales.
“Furthermore, we have deployed a mobile application and updated our website for online claims processing, offering depositors the option of virtual verification during payout exercises.
“I urge depositors of banks in liquidation to utilise these initiatives to claim their funds trapped in closed banks. Rest assured, NDIC remains committed to protecting Nigerian depositors and striving to be one of the best deposit insurers globally.”
Recall that the NDIC recently announced that the depositors, creditors, and shareholders of 20 failed banks in Nigeria will get an additional N16.18 billion in liquidation dividends.
The latest payment will increase dividends paid to the depositors to N61,63 billion after making cumulative payments of liquidation dividends totalling N45,45 billion as of July 2023, representing amounts exceeding the insured sums to depositors of the 20 banks.
NDIC set to shut down Nigerian banks over default
Legit.ng reported that the NDIC has disclosed its plan to go after failing banks in the country.
Bello Hassan, its Managing Director, said the company will soon approach the Federal High Court to issue the winding-up rules for failed deposit-taking institutions under Section 56 of the NDIC Act 2023.
According to Daily Trust, he made this known in Port Harcourt at a sensitisation seminar organised for judges of national industrial courts and members of the investment and security tribunal.
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Source: Legit.ng
