Home Business & Economy NDIC pays N116bn to depositors, creditors of defunct banks

NDIC pays N116bn to depositors, creditors of defunct banks

NDIC pays N116bn to depositors, creditors of defunct banks

COMFORT EKELEME

Nigerian Deposit Insurance Corporation (NDIC) said that it had made cumulative payments amounting to ₦116.258 billion to depositors, creditors and shareholders as at 31st December, 2018.

NDIC in its 2018 annual report released recently revealed that ₦108.641 billion and ₦2.973 billion were paid to insured and uninsured depositors of defunct Deposit Money Banks (DMBs) respectively. ₦70.53 million was paid to depositors of defunct Micro Finance Banks (MFBs) and Primary Mortgage Banks (PMBs).

The Corporation said also that it made payments of ₦1.272 billion to creditors and ₦3.30 billion to shareholders of banks in-liquidation.

Also, within the year under review, NDIC said that paid ₦4.83 million to 338 depositors of 18 closed DMBs, and as at 31st December, 2018, the corporation has paid a cumulative sum of ₦8.25 billion as insured amount to 442,999 depositors of closed DMBs against the payment of ₦8.24 billion to 442,661 depositors as at 31st December, 2017.

According to the report, the corporation equally made a payment of ₦89.24 million insured deposits to 1,804 depositors of MFBs in-liquidation compared to 173 depositors of closed MFBs and N13.24 million paid in 2017.

The significant increase, the report said was due to the 138 MFBs that were closed during the year. The cumulative payment of ₦2.97 billion was made to 83,415 depositors of closed MFBs as at 31st December, 2018, compared to N2.88 billion paid to 81,611 depositors of closed MFBs as at 31st December, 2017.

Also, NDIC paid the sum of ₦2.13 million insured deposits to 29 depositors of closed PMBs, compared to ₦15.38 million paid to 170 depositors in 2017, and had paid the cumulative sum of ₦70.53 million to 869 depositors as at 31st December, 2018 compared with N68.40 million paid to 840 depositors as at 31st December, 2017.

On payment of liquidation dividend to uninsured depositors of DMBs, the report noted that during the year under review, NDIC paid the sum of ₦1.52 billion to uninsured depositors of 20 DMBs in-liquidation. The NDIC has paid the cumulative sum of ₦100.39 billion as liquidation dividend to uninsured depositors of closed DMBs as at 31st December, 2018.

However, the corporation paid the sum of ₦593.78 million to 48 shareholders of Alpha Merchant Bank, Rims Merchant Bank and Continental Merchant Bank in 2018. The cumulative liquidation dividend paid amounted to ₦3.30 billion to 679 shareholders of 6 DMBs in-liquidation as at 31st December, 2018 against ₦2.71 billion paid to 631 shareholders of DMBs in-liquidation as at 31st December, 2017. However, the total liquidation dividend declared for shareholders of DMBs-in-liquidation stood at ₦4.04 billion as at 31st December, 2018.

Meanwhile, through sustained and diligent liquidation activities, the NDIC has realized assets to fully pay the deposits of the customers of 17 out of the 49 Deposit Money Banks in-liquidation. In effect, all the depositors of the 17 defunct banks who came forward to file their claims have been paid all their monies (both insured and uninsured) that were erstwhile trapped in such banks.

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