NDIC pays N11.76b to 535,815 depositors of defunct banks

The Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, yesterday, disclosed that the Corporation has paid N11.76billion as insured sums to 535, 815 depositors of closed banks.

Hassan, who disclosed this in Abuja, at an event to mark the corporation’s special day at the 16th Abuja International Trade Fair, maintained that a total of N101.67bn has also been paid as uninsured sums as of June 30, 2021.

According to the Director, N6.16 billion has been paid as a liquidation dividend to 1,955 creditors and shareholders of closed banks.

He noted that the Corporation has declared full payment of insured and uninsured sums to depositors of 18 banks in liquidation.

Describing the NDIC, as a critical component of the financial safety net, Hassan explained that the body took a frontline position in the protection of depositors from the loss of their savings as a result of the effect of the COVID-19 pandemic on the banking system, in collaboration with the Central Bank of Nigeria (CBN).

Restating the corporation’s commitment towards protecting depositors and the stability of the banking sector, Hassan said it has become imperative to call on the general public, especially traders and businessmen to always save their money in licensed banks where their savings are protected by NDIC and not kept in their homes or shops to avoid the dangers of fire, theft, armed robbery, floods and other forms of losses.

“I would also like to serve a word of caution against patronising unscrupulous services of Ponzi schemes and illegal fund managers, otherwise called “wonder banks” who masquerade as deposit-taking institutions to dupe unsuspecting members of the public of their hard-earned funds. They offer unrealistically high returns to lure their “victims” only to bolt away with their money.

“These entities are not licensed by the CBN as deposit-taking institutions and are therefore not covered by the NDIC,” he said.

Also speaking, vice chairman, Commerce and Industry (ACCI), Anene Johnson Somadina, urged NDIC to prevail on commercial institutions and the Bank of Industry (BOI) to fund manufacturing in the country.

According to Johnson, so many manufacturers have good ideas but lacked the seed capital to start-up and actualize their dreams, adding that an economy devoid of bank support could hardly grow.