Uninsured depositors of failed banks paid N101.37bn – NDIC

The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation, Mr Bello Hassan, has said that uninsured depositors of failed banks paid N101.37 billion.

He said this at the opening ceremony of the 19th edition of the workshop for Business Editors and Finance Correspondents Association of Nigeria on Monday in Port Harcourt, Rivers State.

“As at June 2022, the NDIC had cumulatively paid N11.83bn to over 443,949 insured depositors and over N101.37bn to uninsured depositors of all categories of banks in-liquidation,” he said.

He said the NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation.

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The liquidation activities, as of June 30, 2022, he added, covered a total of 467 insured financial institutions in-liquidation, comprising of 49 Deposit Money Banks, 367 microfinance banks and 51 Primary Mortgage Banks.

“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 realided enough funds from their assets to fully pay all depositors of the listed banks,” he said.

 In the area of consumer protection, he said, the corporation had strengthened its complaints resolution platforms, which included the toll-free help desk, social media handles and complaints desks in the bank examination, special insured institutions and claims resolutions departments, as well as its zonal offices, to receive and process complaints from depositors.

In the area of scaling-up the deposit insurance framework and ensuring faster and orderly resolutions of liquidated insured institutions, in May he added, with the active participation of the relevant stakeholders, it had developed and deployed the Single Customer View platform for the microfinance and Primary Mortgage Banks in order to strengthen its processes and procedure for data collection.

He said 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.