By Etuka Sunday
Nigeria Deposit Insurance Corporation (NDIC) yesterday disclosed that it paid the sum of N11.50 billion to depositors, creditors, shareholders and other stakeholders of closed financial institutions as at 31st December, 2017.
NDIC said, presently each depositor of Deposit Money Banks (DMBs), Non-Interest Banks (NIBs) and Primary Mortgage Banks (PMBs) is insured up to the maximum limit of 500, 000. 00; while the maximum insured coverage for depositors of Micro Finance Bank (MFBs) is N200, 000.00.
It, however, stressed that depositors who have funds in excess of the insured limits are paid dividends from the liquidation of failed banks, depending on the quality of their assets and the outcome of debt recoveries by the Corporation.
Speaking on the occasion of the NDIC ‘Special Day’ at the 13th Abuja International Trade Fair, the Managing Director/Chief Executive, NDIC, Alhaji Umaru Ibrahim said, “Apart from the DMBs, PMBs and MFBs, the Corporation also provides Deposit Insurance Coverage to subscribers of Mobile Money Operators to the maximum limit of N500, 000.00 through the Pass-through Deposit Insurance Framework in its drive to promote financial inclusion across the broad spectrum of the economy. This followed the licensing of 21 MMOs by the Central Bank of Nigeria (CBN).
“Due to the rapid improvement in its processes and procedures, the NDIC recorded a quantum leap in the payment of insured sums and liquidation dividends to depositors and other claimants of closed banks in 2017.
“On the aggregate, the NDIC paid the sum of N11.50billion to depositors, creditors, shareholders and other stakeholders of closed financial institution as at 31st December, 2017.
“Another milestone achievement of the Corporation in 2017 was the declaration of 100 percent and final liquidation dividends to depositors of the defunct Eagle and Financial Merchant Banks (in-liquidation) which increased the number of banks for which a final dividend of 100 percent had been declared to 16. That means that the depositors of the 16 DMBs in-liquidation have been fully paid all the deposit balances they had in their accounts in those banks at the time of closure,” he said.
The NDIC boss, represented by the Director, Enterprise Risk Management of the Corporation, Peter Nggada, said, “The sum of N207. 45 million was realised from the disposal of physical assets of closed banks. Thus, the cumulative sum of N21. 85 billion was realised from the disposal of physical assets of closed banks as at 31st December, 2017. The funds realised was used to pay liquidation dividends to the uninsured depositors of closed banks.”
He further said, “In order to increase the level of financial inclusion among the 40.1million Nigerians outside the formal financial system, the NDIC, as a member of the Financial Services Regulation Coordinating Committee (FSRCC), is proactively implementing the National Financial Inclusion Strategy by adopting various public awareness activities such as World Savings Day, promotion of financial literacy among youths in secondary schools, Television and Radio jingles, annual workshop for Business Editors and Finance Correspondents Association of Nigeria etc.”.
He said the theme of the fair: “Enhancing SMEs in Agribusiness through Innovative Technology” could not have been more apt, given the determination of the current administration to achieve inclusive economic growth, especially through the development of the agricultural sector.
“Let me add that as a key player in the Nigerian financial system, the NDIC is resolute in its determination to complement the roles of other regulators and institutions to ensure that the soundness and stability required to support agro-based small and medium enterprises is provided,” he said.