NDIC to compensate 182 banks’ depositors

The Central Bank of Nigeria recently revoked the licences of 182 banks, according to the Nigeria Deposit Insurance Corporation (NDIC), and the organisation claimed it has started the process of paying all impacted depositors.

Four Primary Mortgage Banks and 178 Microfinance Banks are among the affected banks. 62 of them had already shut down their businesses, 74 had been deemed insolvent, 12 were temporarily distressed, and the final six had been voluntary liquidated.

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Speaking at a two-day workshop on building capacity for senior management staff of the organisation held at the Four Points by Sheraton hotel in Ikot Ekpene with the theme “Result Based Procurement: A Strategic Approach,” the managing director of NDIC, Alh. Bello Hassan, provided the assurance on Friday.

Hassan who was represented by the Executive Director, Operation, Alh Mustapha Ibrahim said that the corporation would not compromise standards and would also ensure that no room is left for public panic over the safety of bank deposits.

He stated that NDIC would continue to strengthen the financial system to appropriately support the economic advancement of the nation and also contribute meaningfully to financial system stability.

He said, “It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a Deposit Insurer; others being; the prudential Regulation & Supervision, Failure Resolution, Deposit Insurance and Lender of Last Resort function of the Central Bank of Nigeria.

“These components continue to safeguard the safety and soundness of the banking system as well as promote financial stability.

“Following the recent revocation of the licenses of 178 Microfinance Banks and four Primary Mortgage Banks by the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation has since commenced the liquidation exercise with the main purpose of paying the guaranteed sum, recovery of debts owed the banks, sale of physical assets and payment of liquidation dividend on the uninsured sum.

“The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums.”