- NDIC tis to commence payments of N16 billion to customers whose funds have been stuck in 20 failed banks
- This move will come as a welcome relief to affected customers who over the years have been trying get back their money
- The wait to get their funds back dates back to as far 29 years ago for example the Financial Merchant Bank closed in 1994
The Nigeria Deposit Insurance Corporation (NDIC) is set to pay out over over N16 billion as liquidation dividend to depositors, creditors, and shareholders of 20 failed banks.
The failed banks have been in-liquidation and some as far back as 1994 with the funds have trapped.
Photo credit: Patrick Meinhardt
Source: Getty Images
This was disclosed in a statement by Bashir Nuhu, the Director, Communication and Public Affairs of NDIC in Abuja on Monday, October 2, 2023.
According to the Nuhu the declaration followed impressive recoveries from debtors and realisation of assets of the banks in liquidation.
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He said the Corporation had commenced verification and payment of stakeholders covered by the declarations within 30 days, which started from Sept. 28, Guardian reports.
NDIC statement reads:
”It is instructive to note that the ongoing payment is sequel to earlier payment of various sums which cumulatively amounted to N45.45 billion as liquidation dividends in respect of the 20 banks as at July.
”Relevant stakeholders have been requested to visit any of the NDIC’s offices closer to them or go to the claims page on the Corporation’s website.”
Nuhu also explained that the liquidation dividend represents surplus amount paid by the NDIC to depositors of a closed bank, exceeding the insured sums.
The list of banks and year of closure
In an earlier report, Legit.ng over the past 28 years, at least 45 commercial and merchant banks have ceased operations.
Here are the 20 banks selected by NDIC for payment and year of closure.
- Liberty Bank- Jan. 16, 2006
- City Express Bank- Jan. 16, 2006
- Assurance Bank- Jan. 16, 2006
- Century Bank- Jan. 16, 1998
- Allied Bank- Jan. 16, 1998
- Financial Merchant Bank- Jan. 21, 1994
- Icon Merchant Bank- Jan. 16, 1998
- Progress Bank- Jan. 16, 1998
- Merchant Bank of Africa (MBA)- Jan. 16, 1998
- Premier Commercial Bank- Dec. 22, 2000
- North South Bank- Jan. 16, 1998
- Prime Merchant Bank- Jan. 16, 1998
- Commercial Trust Bank- Jan. 16, 1998
- Cooperative and Commerce Bank
- Rims Merchant Bank- Dec. 22, 2000
- Pan African Bank- Jan. 16, 1998
- Fortune Bank
- All States Trust Bank- Jan. 16, 1998
- Nigeria Merchant Bank- Jan. 16, 1998
- Amicable Bank- Jan. 16, 1998
Checks showed that Ecobank acquired All States Trust Bank, as well as its over 32,000 depositors who became part of Ecobank’s customer base.
Access Bank, GTCo, Zenith, and UBA pay shareholders highest dividends
Meanwhile, in another report, Legit,ng revealed the list of commercial banks with the highest loans to customers in the first six months of 2023.
Access Bank led the table with over N6 trillion loans to customers, followed by First Bank and United Bank of Africa.
The Central Bank of Nigeria mandates banks to loan a minimum of 65% of deposits in their possession.
Source: Legit.ng
