NDIC to start paying depositors of 182 liquidated banks

The Central Bank of Nigeria recently revoked the licences of 182 banks, according to the Nigeria Deposit Insurance Corporation, which announced that it has started the process to compensate the affected depositors.

Four primary mortgage banks and 178 microfinance banks are among the affected banks.

Of these, 62 have already shut down their businesses, while 74 have been deemed insolvent. Six were willingly liquidated, and twelve were temporarily troubled.

Alhaji Bello Hassan, the managing director of NDIC, provided the assurance on Friday while speaking at a two-day capacity-building workshop for senior management staff of the corporation held in Ikot Ekpene with the theme "Result-based procurement: A strategic approach."

Alhaji Mustapha Ibrahim, the Executive Director of Operations, who was standing in for Hassan, said that the company will uphold its standards and make sure there was no place for public concern regarding the security of bank balances.

According to him, NDIC would keep bolstering the financial system to effectively support the country's economic growth and make a significant contribution to financial system stability.

He said, “It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a deposit insurer; others being the prudential Regulation and Supervision, Failure Resolution, Deposit Insurance and Lender of Last Resort function of the Central Bank of Nigeria (CBN).

“Following the recent revocation of the licences of 178 microfinance banks and four Primary Mortgage Banks by the Central Bank of Nigeria, the NDIC has since commenced the liquidation exercise with the main purpose of paying the guaranteed sum, recovery of debts owed the banks, sale of physical assets and payment of liquidation dividend on the uninsured sum

“The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums,”

Alhaji Mamman Ahmadu, Director-General of the Bureau of Public Purchase, stated that any public purchase without plans and documents amounted to criminal activity in his remarks.

Source