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NDIC pays N102bn of uninsured claimants in 32 years

Failed banks: NDIC seeks collaboration with law enforcement agencies for prosecution

The Nigeria Deposit Insurance Corporation (NDIC) has paid over N102 billion as uninsured claims to individuals and corporate bodies affected by the closure of some banks in 32 years, Bello Hassan, chief executive officer of the corporation has said.

The corporation also paid a cumulative amount of about N11.8 billion as insured claims to about 535,815 depositors of the closed banks across the country, from inception till June 30, 2021.

Hassan stated that the payment of the claims was carried out in line with the mandate of the organisation which is primarily geared at ensuring financial system stability in the country.

The CEO, who made the disclosure in his address at the corporation’s special day, at the 42nd Kano international trade fair, weekend, also said the organisation paid about N6.16 billion to 1,955 creditors and shareholders of the closed banks, within the period.

With this development, the corporation had made full payment to all insured and uninsured depositors of 18 commercial banks, and this implies that all depositors of the affected banks who presented themselves for claims had been settled.

“The NDIC was established in 1989 as a statutory agency of government with four broad mandates of Deposit Guarantee, Bank Supervision, Distress Resolution, and Bank Liquidation. With the primary public policy objectives of contributing to financial system stability by making incidences of banks run s less likely.

“It also protects depositors by providing an orderly means of resolution and reimbursement in the event of bank failure. Suffice me to state that from inception till date, NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability.

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“A total cumulative amount of N11.76 billion was paid as insured sums to 535,815 depositors of closed banks, while, a total of N101.666 billion had been paid as uninsured claims as of 30th June 2021. In addition, a total of N6.159bn had been paid as liquidation dividend to 1,955 creditors and shareholders of the closed banks”, he explained.

Hassan, who is also the managing director of the Corporation, assured that the regulatory organisation would continue to strive for a sound, safe, and stable financial system which is pivotal for sustainable economic growth.

In this regard, he added that the corporation had been promoting innovations in the financial system by extending depositors insurance cover to microfinance banks, primary mortgage banks, non-interest banks, subscribers of mobile money operators, and also to recently licensed payment service banks (PSBs), in order to engender confidence in the financial system.

“Meanwhile, for the convenience and to facilitate access of our depositors and stakeholders, the corporation’s website was activated and constantly monitored to enable depositors and other claimants of closed banks and banks in-liquidation to remotely file and process their claims.

“Depositors and other claimants are urged to continue to avail themselves of this opportunity to file their claims by visiting the ‘Claim Page’ on the NDIC website (www.ndic.gov.ng)” he further explained.

The MD, advised bank customers using Automatic Teller Machine (ATM) to always be vigilant and be more cyber aware, and ensure that they do disclose their ATM details and other sensitive bank account details, and do not patronise Ponzi schemes and illegal fund managers otherwise known as ‘Wonder Banks’.

He hinted that the mentioned groups could dupe unsuspecting members of the public of their hard-earned money, as such entities are not licensed by the CBN as deposit-taking institutions and are therefore not covered by the organisation.