The Nigeria Deposit Insurance Corporation (NDIC) has made a cumulative payment of N11.83 billion to over 443,949 insured depositors and over ₦101.37 billion to uninsured depositors of all categories of banks in-liquidation.
The NDIC Managing Director/ Chief Executive Officer, Mr. Bello Hassan, made the disclosure at the opening session of the 19th edition of workshop for Business Editors and Finance Correspondents on Monday taking place in Port Harcourt, Rivers State. The theme of this year’s workshop organised by the NDIC is “Boosting Depositors’ Confidence Amidst Emerging Issues and Challenges in the Banking System”.
Mr Hassan explained that the NDIC bank liquidation process mandate entails reimbursement of insured
and uninsured depositors, creditors, and shareholders of banks in-liquidation.
According to him, “The liquidation activities, as at June 30, 2022, covered a total
of 467 insured financial institutions in-liquidation, comprising of 49 DMBs,
367 MFBs, and 51 PMBs.
“As at June 2022, the NDIC had cumulatively paid ₦11.83 billion to over 443,949 insured depositors and over ₦101.37 billion to uninsured depositors of all categories of banks in-liquidation.
” It is most profound for me to say that, out of the 49 DMBs in-liquidation,
the Corporation in September, 2022 declared 100 per cent liquidation
dividend in 20 of those institutions, meaning that the Corporation has
realized enough funds from their assets to fully pay all depositors of the
listed banks.”
Giving further details on the
deposit Guarantee, the NDIC Managing Director revealed that as at June 30, 2022, the NDIC provided deposit insurance coverage to a total of 981 insured financial institutions.
He said the breakdown includes:
33 DMBs made up of 24 Commercial Banks,
Six Merchant Banks and Three Non-Interest Banks (NIBs) plus
Two Non-Interest Windows; 882 Microfinance Banks (MFBs); 34
Primary Mortgage Banks (PMBs); Three Payment Service Banks
(PSBs) and 29 Mobile Money Operators.
Mr. Hassan said the Corporation had in May this year, developed and deployed the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks in order to strengthen NDIC
processes and procedure for data collection as part of scaling-up the deposit insurance framework and ensuring
faster and orderly resolutions of liquidated insured institutions.
“The platform would not only
ensure availability of quality, timely and complete data to the NDIC, but
would eliminate delays often experienced in reimbursing depositors
following revocation of institutions’ licenses by the CBN.
“The final phase of the implementation of the SCV for Deposit Money
Banks (DMBs) will be achieved through the incorporation of the SCV
template as part of the on-going Integrated Regulatory Solution (IRS)
jointly being developed with the CBN”, he assured.
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