NDIC pays out N113.2 billion to customers of failed Nigerian banks

This was disclosed by Bello Hassan, the managing Director of NDIC at the 2022 NDIC workshop which was organized for the Finance Correspondents Association of Nigeria (FICAN) and business editors across the country.

The corporation noted that as of June 2022, over 443,949 insured depositors received N11.83 billion while N101.37 billion was paid out to uninsured depositors of all categories of banks in-liquidation.

A failed bank or a bank which is said to be in liquidation is a financial institution that all its branches have permanently shut down while its assets have been sold off and proceeds used to settle any incurred debts and as many of its remaining liabilities as possible.

When a decision has been taken to suspend all or part of a business operation, the corporation's shareholders are also dissolved and later receive what is known as a Liquidation dividend.

This dividend is generally paid from the capital of the corporation as the NDIC boss also confirmed the corporation had realized enough funds from the sale of the assets to fully pay off all depositors of the affected banks.

Hassan also confirmed the NDIC had also provided deposit insurance that covered a total of 981 insured financial institutions in the country.

The NDIC boss noted that the financial institutions insured include; 33 deposit money banks - 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.

To further strengthen the corporation's processes and procedure for data collection, the NDIC had in May, created and deployed a platform for the microfinance and primary mortgage banks known as the Single Customer View (SCV).

Hassan explained that following the revocation of the licenses of some of the defaulting institutions by the CBN, the platform was created to ensure the availability of quality, timely and complete data to the NDIC and also eliminate delays often experienced in reimbursing depositors.