From Lawrence Njoku, Enugu
The Nigeria Deposit Insurance Corporation (NDIC) has declared full (100%) payment of liquidation dividends to depositors of 20 failed banks in Nigeria.
The Managing Director of NDIC, Mr. Bello Hassan, stated this yesterday, during the agency’s special day at the ongoing 36th Enugu International Trade Fair.
Hassan, represented by the South-East Zonal Coordinator of NDIC, Pamela Robert, also disclosed that the Corporation has commenced preparations to pay the first tranche of liquidation dividends for April 2025.
He stated that the NDIC is committed to ensuring a stable financial environment that safeguards depositors’ funds and builds public confidence to enable businesses to thrive and contribute to the nation’s economic development.
Hassan clarified that, by their statutory mandate, the NDIC, as a liquidator, is responsible for winding down the affairs of the failed bank, reimbursing insured depositors, recovering debts owed to the bank, and realising its assets for the payment of depositors and other claimants.
He said, “For over three decades, the NDIC has played a vital role in safeguarding depositors and fortifying the financial system. Our primary mandate includes insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event of bank failures.
“We are dedicated to protecting bank deposits from the adverse effects of bank failures. In collaboration with the Central Bank of Nigeria (CBN), we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions.
“Our mission, embodied in the tagline, “Protecting your bank deposits,” is to promote financial inclusion and stability by reassuring Nigerians of the safety of their savings,” he stated.
He added that the NDIC has consistently played a crucial role in maintaining financial stability by ensuring that depositors receive prompt compensation when banks fail.
Hassan added, “A recent example is the revocation of Heritage Bank’s operating license by the CBN on June 3, 2024. In line with its statutory mandate, the Corporation immediately began the liquidation process, including verification and payment of insured deposits of up to a maximum of N5 million per depositor within four days.
“This swift action has enabled the payment of insured amounts to the majority of the bank’s depositors using their Bank Verification Numbers (BVN) as a unique identifier to locate their alternate accounts for payment.”
