"Come Now": NDIC Begins Customers' Verification of Failed Bank 20 Years Ago, Gives Instructions

• The Nigeria Deposit Insurance Corporation (NDIC) has commenced a verification exercise for Peak Merchant Bank
• The exercise aims to ensure that all the bank depositors are duly paid their insured deposits
• Legit.ng had earlier revealed a list of 45 failed banks in Nigeria and how two were taken over by UBA and Ecobank

The Nigeria Deposit Insurance Corporation (NDIC) has started verifying the insured depositors of Peak Merchant Bank in liquidation.

This is in line with its duty of deposit guarantee and reimbursement of depositors in case of bank failure.

Peak Merchant Bank Limited's operating license was revoked Friday, 28 February 2003.

NDIC gives instruction

According to a statement by the Director (Communication and Public Affairs), Bashir Nuhu, the verification process will help depositors to verify their account information and balances with the bank at the time of its closure.

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It further noted that the verification exercise is a precursor to paying insured sums to the depositors, the Nation reports.

NDIC further advised depositors to visit the bank's old premises or the nearest NDIC office with proof of account ownership and identification documents for the exercise.

The NDIC also explained that the insured sum is the first payment made to depositors if a bank fails up to a specified limit, and amounts in excess of insured sums are subsequently paid as liquidation dividends from the proceeds of the closed bank's assets realized by NDIC as liquidator.

List of failed banks in Nigeria

Meanwhile, in an earlier report, Legit.ng revealed a list of 46 failed banking in the last 28 years.

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The banks had their licenses revoked by the Central Bank of Nigeria, between 1994 and 2006.

Also, in 2018, Skye Bank had its operating license revoked by the CBN, and Polaris Bank was authorized to take over.

Further details of the failed banks and how United Bank of Africa, and Ecobank took over two were captured in the report.

CBN to close millions of bank accounts in Access, UBA, Zenith, and others

In another report, Legit.ng revealed that CBN is planning to close bank accounts without BVN to clean up the sector and reduce fraud.

BVN is a unique identifier capturing biometric data used to verify customer identities and prevent fraud.

24 commercial banks are operating in Nigeria, including Access, UBA, Zenith, and other financial institutions that require BVN.

Source: Legit.ng