The Nigeria Deposit Insurance Corporate (NDIC) has year to date recovered over N29.112 billion from debtors of Deposit Money Banks (DMBs) in-liquidation, it said.
Also, the corporation realised N129.10 million and N300 million from Microfinance Banks (MFBs) and Primary Mortgage (PMBS) Banks, respectively.
The Corporation is identified with ensuring that Depositors of liquidated banks suffered little loss or pain. Between 1994 to date, 53 DMBs, 325 MFBs, and 51 PMBs were put under liquidation without disruption to the nation’s payment system, according to the agency.
Umaru Ibrahim, managing director/CEO, NDIC, disclosed in Abuja at a press conference to kick-start events scheduled to commemorate the 30th-anniversary celebration of the corporation.
He said on realisation of assets, currently N21.502 billion was collected from the disposal of physical assets of closed DMBs, while N404.74 million and N78.17 million were realised in respect of MFBs and PMBs, respectively.
Debt collection and Assets sales culminated in the payments of over N116.258 billion as Liquidation Dividends to Depositors, Creditors and Shareholders of closed DMBs, MFBs and PMBs as at today, he said.
“It is important to stress that through sustained and diligent liquidation activities, NDIC has realized assets to pay in full, deposits of the customers of 17 of the DMBs (in-liquidation).”
“In effect, all the depositors of the 17 defunct banks who came forward to file their claims have been paid all their monies (both insured and uninsured) erstwhile trapped in those banks”.
To date, the NDIC has paid a cumulative sum of over N8.25 billion as insured amount to 442,999 depositors of closed DMBs; paid over N2.97 billion to 83,415 depositors of closed MFBs, and over N70.53 million was paid to 869 depositors of closed PMBs.
The Corporation increased the maximum deposit insurance coverage twice, from N50,000.00 per depositor per deposit money bank (DMB) at inception, to N200,000.00 in 2006 and N500,000.00 in 2010. Similarly, maximum coverage per depositor of PMBs/MFBs was increased from N100,000.00 in 2006 to N200,000.00 in 2010. Coverage per depositor per PMB had since been increased to N500,000.00 to reflect the increased deposits structure in the sub-sector and to stimulate Mortgage Savings.
Since its inception, the Corporation successfully responded to economic realities and desires of Depositors by periodically increasing the Maximum Deposit Insurance Coverage to enhance the confidence of the public in the Nigerian financial system. On average, this is done every five years in line with Global best practice.
“It is gratifying that in 30 Years since its establishment, the Corporation has fulfilled the public policy objectives for which it was established. Therefore, the Corporation has lined up a series of activities to celebrate its remarkable achievements in the past 30 years as well as give honour to its founders who have left a legacy of excellence in service and commitment to the stability of the financial system,” Ibrahim said.
