As of September 22nd, the closed Microfinance Banks and 4 Primary Mortgage Banks had paid a total insured amount of N1.084 billion naira to 29,573 depositors, according to the Nigerian Deposit Insurance Corporation, or NDIC.
In a news conference following the NDIC Special Day event at the 18th ongoing Abuja International Trade Fair, the Corporation’s Managing Director, Bello Hassan, revealed the information.
According to Mr. Hassan, the Central Bank of Nigeria (CBN) revoked the licences for 179 MFBs and PMBs, at which point the NDIC started paying the cumulative insured monies to depositors.
He explained that while payments are still being made, depositors with cash above the insured level will receive liquidation profits following the repayment of bills and sale of tangible assets from the collapsed banks.
The head of the NDIC emphasised that the Corporation’s supervision of banks, together with its monitoring and supervisory efforts, operate as a consumer protection tool for depositors.
The process of validating and disbursing liquidation dividends to stakeholders and depositors of 20 other closed banks, he added, is also underway at the Corporation.
The general public, Mr. Hassan warned, should be careful of unlawful fund managers, Wonder Banks, and Ponzi Schemes that are not NDIC-insured.
These companies, he claimed, “promise earnings and interest rates that are too good to be true, causing terrible losses for many. It is crucial to remember that these wonder banks are neither insured by the NDIC deposit insurance programme nor granted licences by the Central Bank of Nigeria.
“Therefore, members of the public are urged to only patronise financial institutions that display NDIC Stickers bearing the words: “Insured by NDIC” in their banking halls or entrances and numerous branches around the nation
