NDIC pays N3.303bn insured deposits of liquidated banks
On April 2, 2012 · In News


ENUGU – THE Nigerian Deposit Insurance Corporation, NDIC, has paid N3.303 billion of N5.241 billion insured deposits of 35 deposit money banks liquidated since 1994.

Managing Director/Chief Executive Officer of the corporation, Alhaji Umaru Ibrahim who disclosed this during the NDIC Special Day at the ongoing 23rd Enugu International Trade Fair, said the corporation had in addition paid N6.151 billion out of N11.576 billion liquidation dividend that was declared to depositors of the 35 deposits money banks.

Alhaji Ibrahim, who was represented by the South East Zonal Director of the corporation, Mr Sambo Michah, said the corporation had concluded payment of N2.19 billion to over 71,000 depositors of 103 closed micro-finance banks, MFBs, in the country.

He said the corporation was making arrangement to transfer payment of depositors through eight agent banks across the country, including First Bank of Nigeria, Access Bank  Unity Bank  and  UBA.

The Board of the corporation, he said resolved to increase the deposit insurance coverage levels from N200, 000 and 100,000 to N500,000 and N200, 000 for deposit money banks, DMBs, and Microfinance Banks, MFBs, Primary Mortgage Institutions,PMIs, respectively to enhance public confidence.

Ibrahim  pointed out that the new level was used to settle depositors of the 103 MFB closed in 2010.
He recalled that the dichotomy between commercial and merchant banking activities were abolished following the adoption of Universal Banking Model in 2000.

According to him, following the  joint special examination that was conducted in 2009 by CBN and NDIC which revealed that 10 deposit money banks were in grave financial condition, the Regulatory Agencies intervened with a view to stabilizing the banking system.

He assured that the corporation would continue to protect the deposits of bank customers as part of efforts to sustain their confidence in the banking sector.

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