NDIC Pays N1.084b To Over 29,000 Depositors Of Defunct Banks

By Umbwanko Baba

The Nigerian Deposit Insurance Corporation, NDIC, says it paid N1.084 billion naira to 29,573 depositors of defunct Micro Finance Banks, MFB as insurance.

The Managing Director of NDIC, Mr. Bello Hassan who stated this while delivering his speech at the NDIC special Day held at the 18th Abuja International Trade Fair, explained that this followed the revocation of licenses for 179 Microfinance Banks and 4 Primary Mortgage Banks by the Central Bank of Nigeria, CBN.

He stressed that the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks.

Mr. Hassan noted that the Corporation was in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks which are Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, among others.

The NDIC Chief Executive further cautioned the general public to be mindful of illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes.”

He explained that the entities offer high interest rates and profits that are too good to be true, leading to devastating losses for many.

Mr. Hassan posited that these wonder banks were neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme.

He enjoined the public to patronize only banking institutions with a display of NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country.

Edited By Grace Namiji