“We have enough money to pay depositors of distressed banks,” says NDIC

The Nigerian Deposit Insurance Corporation(NDIC) says it will pay depositors whose monies are trapped in 23 distressed banks.

Bello Hassan, the corporation’s managing director, made this known on Thursday at the “NDIC Day” at the ongoing 43rd Kaduna International Trade Fair.

Hassan was represented at the event by Bashir Nuhu, director of communication and public affairs at NDIC.

He called on depositors of banks that have been liquidated to avail themselves of the corporation’s physical and online platforms for claiming their trapped deposits.

He said the online claim verification platform had been incorporated into the claim page on the NDIC’s website to facilitate the processing of claims from the comfort of depositors’ houses and offices.

According to Hassan, the primary public policy objective of NDIC is to contribute to financial system stability by making incidences of bank runs less likely, while also protecting depositors by providing an orderly means of resolution and reimbursement in the event of bank failures.

“It may interest you to note that from its dogged liquidation activities, the corporation has declared 100 per cent liquidation dividends to depositors of 22 DMBs in liquidation,” he explained.

“What this means is that NDIC has realised enough to pay all depositors of the concerned 23 DMBs 100 per cent of their money trapped in those banks.

“As a result, the corporation has since moved on to commence payment of liquidation dividends to creditors and shareholders of some of the banks, indicating that their depositors can access their full payment whenever they file their claims.”

Hassan said the corporation provides deposit insurance cover to microfinance banks (MFBs), deposit money banks (DMBs), non-interest Banks (NIBs), primary mortgage banks (PMBs), subscribers of Mobile Money Operators (MMOs), and also to the recently licensed payment service banks (PSBs).

“Presently each depositor of DMBs, NIBs, PMBs and subscribers of MMOs are insured up to the maximum limit of N500,000.00 per bank in the event of failure; while the maximum insured coverage for depositors of MFBs is N200,000.00 per bank,” he said.

Hassan, however, said that depositors who have funds in excess of the insured limits were paid dividends from the proceeds of assets and debt recovery in respect of the failed banks.

‘This emphasis becomes pertinent as depositors often ask what becomes of their funds in excess of the NDIC guaranteed sums,” he added.

“The guaranteed sums are first and immediate payment while liquidation dividends are second and prorated payments attached to the bank liquidation mandate of the corporation.”