Money

965 shareholders of banks in liquidation received over N4bn in September 2021 – NDIC

Published

1 year ago

November 29, 2021

The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, disclosed that 965 shareholders of banks in liquidation received N4.886 billion as of September 30, 2021.

Hassan made this disclosure over the weekend at an editors’ forum held in Lagos, noting that there was a steady rise in the number of accounts in the deposit money banks from 2016 through to 2019.

He said, “Most importantly, the payment of N1.274 billion to 991 creditors and ₦4.886 billion to 965 shareholders of banks in-liquidation as of September 30, 2021, underscored the Corporation’s success story in bank liquidation.

“What this implies is that the Corporation had realised enough assets to pay all the insured and uninsured depositors of the banks that present themselves for payment. Currently, 19 out of the 49 DMBs in liquidation fall into this category.

“The Corporation’s deposit insurance coverage limits are not only adequate but robust enough to engender confidence in our banking system. For instance, in 2016, 2017, 2018 and 2019, the total number of accounts in the deposit money banks stood at N83 million, N99.1 million, N112 million and N128.4 million respectively.”

Hassan said that the NDIC had reviewed its terms and conditions laid out for the qualification of financial institutions, noting that the review was important to “provide realistic terms and conditions to facilitate prompt access to technical and/or financial support in line with Section (2)(1)(b) of the NDIC Act whilst also protecting the Corporation from possible downside risk.”

“NDIC had paid a cumulative sum of ₦N8.268 billion to 443,946 insured depositors and ₦100.08 billion to uninsured depositors of deposit money banks (DMBs) in-liquidation as of September 30, 2021, while N3.413 billion was paid to 90,945 insured depositors of microfinance banks and ₦1.218 million to uninsured depositors.

“The cumulative insured amount paid to 1,553 depositors of closed primary mortgage banks as of September 30, 2021, stood at N110.15 million while ₦N7.965 million was paid as uninsured deposits,” he said.