NDIC commences payment of liquidation dividend to depositors of 14 closed banks

The Nigeria Deposit Insurance Corporation (NDIC) has said that it is ready to begin payment of liquidation dividends to uninsured depositors, creditors and shareholders of additional 14 banks in liquidation. It said that the concerned stakeholders in 8 of those closed banks are to receive their first round of liquidation dividend payments, while the other 6 are to be paid additional sums as part of their liquidation dividends. This disclosure is contained in a statement issued by NDIC’s Director of Communications and Public Affairs, Mr Bashir Nuhu in Abuja, according to the News Agency of Nigeria (NAN),

The NDIC in its statement, listed the banks to include, City Express, All States Trust, Allied Bank, Commerce Bank, North-South Bank, Cooperative and Commerce Bank and Nigeria Merchant Bank. Others are Hilltop Micro-Finance Bank (MFB), Olomoyoyo MFB, Evo MFB, Ngwegwe MFB, Bekwarra MFB, Argungu MFB and Edet MFB.

The corporation advised eligible stakeholders of the banks to either visit any of its offices across the country to verify their claims or do so on its website. It also said that it has commenced verification for depositors of 22 Micro-Finance Banks (MFBs) whose operating licences were recently revoked by the Central Bank of Nigeria (CBN), adding that the exercise is geared towards the payment of insured sums to eligible depositors. The corporation explained that depositors of the affected MFBs had been advised to visit the closed banks’ addresses where their claims would be verified by its officials and should also visit its website for the list of the banks.

The NDIC is an independent agency of the Federal Government that was established on June 15, 1988, to strengthen the safety net for the newly liberalised banking sector, following the recommendation of former Central Bank of Nigeria Governor Ola Vincent. The NDIC provides a safety net for depositors in the newly liberalised banking sector. The NDIC advises the CBN in the liquidation of distressed banks, manages distressed banks’ assets until they are fully liquidated and has a supervisory role over-insured banks. The corporation had disclosed that it had liquidated about 425 banks as of February 2020, due largely to bad loans in the past 22 years.