NDIC Pays 535,815 Closed Banks’ Depositors N11.76bn

The Nigeria Deposit Insurance Corporation has said that 467 banks have either been liquidated or undergoing the process of complete liquidation by the corporation.

The Chairman, NDIC, Mrs Ronke Sokefun, said this on Thursday during the 2021 NDIC retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.

“Besides deposit protection, prompt resolution of bank failure in Nigeria by the NDIC in its over 32 years of its existence has succeeded in steering the banking sector off systemic failure and collapse of public confidence, thus safeguarding the role of financial safety net,” she said.

She said the bank resolution options applied so far by the NDIC included financial assistance, technical assistance, hold action, assisted mergers and acquisition, purchase and assumptions, as well as the application of the bridge bank mechanisms.

Sokefun said, “It is only when all these options could not rescue a bank that it is allowed to go into liquidation.

“As at date, 49 DMBs (deposit money banks), 367 MFBs (microfinance banks) and 51 PMBs (primary mortgage banks) are either completely liquidated or undergoing the process of complete liquidation by the NDIC, following the revocation of their operating licenses by the Central Bank of Nigeria.”

The Managing Director, NDIC, Mr Bello Hassan, said the retreat was a follow-up to the last one, which took place in Lagos in June, adding that it was excited about the outcome of the engagement.

He said, “Among regulators/supervisory agencies, it is agreed globally that building and maintaining financial system resilience, which dispels distortions due from adverse unforeseen issues, remains arduous.

“Hence, the theme of this retreat is titled ‘Strengthening Nigeria’s financial safety net: The role of deposit insurance’, to further engage all stakeholders for broader discussion on ways forward, especially at a time when the all-pervading effects of COVID-19 pandemic is still very much with us, which continue to undermine the path to our dear country’s growth.”

The NDIC also said on Thursday that it had paid N11.76bn as insured sums to 535,815 depositors of closed banks from its inception to June 30, 2021.

Hassan, who was represented by the Senior Manager, NDIC, Benin Zone, Mr Udofor Ukpom, said this in Benin, Edo State at the corporation’s special day at the ongoing Edo International Trade Fair.

Hassan said, “From inception till date, NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability, and paid cumulative amount of N11.76bn as insured sums to 535,815 depositors of closed banks while a total of N101.666bn had been paid as uninsured sum as at 30 June, 2021.