Written by Sarah NEGEDU

NDIC pays N11.50bn to failed bank depositors

The Nigeria Deposit Insurance Corporation, NDIC, said it has paid over N11.50billion to depositors, creditors, and shareholders of failed banks as at 2017.

The Managing Director of NDIC, Alhaji Umaru Ibrahim, who disclosed this at the NDIC’s Special Day at the 13th Abuja International Trade Fair, said the feat was made possible due to the improvement in the processes and procedures of the corporation.

Represented by Mr. Peter Nggada, Director, Enterprise Risk Management, NDIC, the MD said the corporation had declared 100percent and final liquidation dividends to depositors of the defunct Eagle and Financial Merchant Banks (in liquidation).

“Due to the rapid improvement in its processes and procedures, the NDIC recorded a quantum leap in the payment of insured sums and liquidation dividends to depositors and other claimants of closed banks in 2017.

“On the aggregate, the NDIC paid the sum of N11.50 billion to depositors, creditors, shareholders and other stakeholders of closed financial institutions as at December 31, 2017,” he said.

“That means the depositors of the 16 DMBs in-liquidation have been fully paid all the deposit balances they had in their accounts in those banks at the time of closure,” he added.

He said NDIC continued to make strenuous efforts in its debt recovery drive in the face of all odds, a move which has resulted to the recovery of N28.84billion from debtors of failed banks.

Thus, the “total recoveries from debtors of failed banks by the NDIC in 2017 amounted to N368.43 million which brought cumulative recovery from debtors to N28.84billion.”

Giving further analysis of the recovered debts, Ibrahim the sum of N207.45 million was realised from the disposal of physical assets of closed banks. “Thus, the cumulative sum of N21.85 billion was realised from the disposal of physical assets of closed banks as at 31st December, 2017. The funds realized were used to pay liquidation dividends to the uninsured depositors of closed banks.”

He reiterated the NDIC’s commitment to deepen financial inclusion in the country, adding that the corporation was implementing the National Financial Inclusion Strategy by adopting various public awareness activities to achieve its purpose.

He named some of the activities to include World Savings Day, promotion of financial literacy among youths in secondary schools, TV and Radio jingles and workshop for Business Editors and Financial Correspondents.

Speaking on the theme of the trade fair, ‘Enhancing SMEs in Agribusiness through Innovative Technology’, Ibrahim said, “The theme could not have been more apt, given the determination of the current administration to achieve inclusive economic growth, especially through the development of agriculture sector.

“As key player in the Nigerian financial system, the NDIC is resolute in its determination to complement the roles of other regulators and institutions.

“We will ensure that the soundness and stability required to support agro-based small and medium enterprises is provided.’’

 

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