NDIC Lists 20 Failed Banks, Offers to Pay Depositors 100% Liquidation Dividends
- The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to pay 100% liquidation dividend to depositors of 20 failed banks
- The corporation disclosed via Pamela Robert, who represented Bello Hassan at the 36th Enugu Trade Fair
- She said the corporation has kick-started plans for the payment of the first tranche of liquidation dividends this month
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigeria Deposit Insurance Corporation (NDIC) has said that it will pay a 100% liquidation dividend to depositors of 20 failed banks, a significant milestone in the corporation’s commitment to depositors' protection.
The NDIC announced this during its Special Day at the 36th Enugu International Trade Fair through its managing director and chief executive, Bello Hassan, represented by the South-East Zonal Coordinator, Pamela Robert.
Source: UGC
NDIC begins payment to customers of 20 banks
She disclosed that plans have started for the payment of the first tranche of liquidation dividends, which will commence this month.
According to her, NDIC is responsible for liquidating failed banks, reimbursing insured depositors, recovering debts, and disposing of assets to ensure full payments to depositors and others.
Robert disclosed that for over 30 years, the corporation has played a significant role in protecting depositors and boosting the financial system.
She stated that the NDIC’s main responsibilities include deposit insurance, supervision of financial institutions, resolution of failing banks, and managing liquidations.
She restated the NDIC’s mission to promote financial inclusion and public confidence in the banking sector, saying that the corporation collaborates with the Central Bank of Nigeria (NDIC) to maintain stability and enforce banking regulations.
NDIC reimburses Heritage Bank customers
Citing the case of Heritage Bank’s licence revocation, Robert said the NDIC immediately began the liquidation process, including verification and timely payment of insured deposits of up to N5 million per depositor within four days.
He noted that most depositors have already received their insured funds via alternative bank accounts linked to their BVN, saying those who are yet to be paid are those without BVN, restricted accounts or have KYC issues such as name mismatch or tier-1 limitations.
She asked affected bank customers to visit the NDIC’s website, email the corporation, contact it via social media, or visit its zonal offices with the necessary documents for payment.
NDIC lists ways to recover funds
Vanguard reports that Robert said that depositors will get up to N5 million, and balances exceed the amount. Also, uninsured deposits are reimbursed as liquidation dividends when enough assets and loan recoveries are made.
Reports say Robert revealed that the NDIC has declared 100% liquidation dividends to depositors of 20 failed banks, stressing that the achievement shows the corporation’s ability to fulfil its mandate.
Regarding Heritage Bank, Robert noted that the corporation has made progress in asset sales and debt recovery.
She expressed optimism about NDIC’s financial and operational capacity to repay all verified depositors.
Source: UGC
She urged all affected depositors to engage with the NDIC to claim their entitlements.
NDIC: How to receive trapped funds
Legit.ng earlier reported that the NDIC said it reimbursed 82.36% of the customers of the liquidated Heritage Bank with deposits below the N5 million maximum insured deposit.
The NDIC’s director of communications and public affairs, Bahir Nuhu, disclosed this on Sunday, August 11, 2024, and said that the corporation achieved this via the use of BVN-linked alternative accounts of customers of the liquidated bank.
According to Nuhu, the NDIC began paying insured deposits of a maximum of N5 million per depositor within four days of the bank’s closure.
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Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced editor and content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa. He has over 10 years of experience in writing and (copy)editing.
