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NDIC has enough to pay 100% of deposits trapped in 23 failed banks

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The Nigeria Deposit Insurance Corporation (NDIC) on Thursday in Kaduna said it had enough funds to pay those whose money is trapped in 23 failed banks across the country.

The Managing Director of the NDIC, Bello Hassan, who disclosed this at the ‘NDIC day’ at the ongoing 43rd Kaduna International Trade Fair, said the corporation has moved for the commencement of payment to the affected depositors.

Hassan said part of its core mandate was to protect banks insured by the corporation and ensure financial stability in the nation’s economy.

Represented by the Director of Communication and Public Affairs, Bashir Nuhu, the NDIC CEO said apart from proving deposit insurance cover Microfinance banks, commercial banks, non-interest banks, said each depositor were insured up to N500,000 in the event of failure while N2 million insures coverage for depositors of Microfinance Banks.

He, however, reiterated that depositors who have funds in excess of the insured limits are paid dividends from the proceeds of assets and debt recovery in respect of the failed banks

“The NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability.

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“The corporation provides deposit insurance cover to Microfinance Banks (MFBs), Deposit Money Banks (DMBs), Non-Interest Banks (NIBs), Primary Mortgage Banks (PMBs), subscribers of Mobile Money Operators (MMOs) and also to the recently licensed Payment Service Banks (PSBs).

“Presently each depositor of DMBs, NIBs, PMBs and subscribers of MMOs are insured up to the maximum limit of N500,000.00 per bank in the event of failure; while the maximum insured coverage for depositors of MFBs is N200,000.00 per bank,” Hassan said.

“It may interest you to note that from its dogged liquidation activities, the Corporation has declared 100 percent liquidation dividends to depositors of 22 DMBs in liquidation.

“What this means is that NDIC has realized enough to pay all depositors of the concerned 23 DMBs 100 percent of their money trapped in those banks.

“As a result, the Corporation has since moved on to commence payment of liquidation dividends to creditors and shareholders of some of the banks, indicating that their depositors can access their full payment whenever they file their claims.

“It is on this note that I like to call on depositors of banks in liquidation to avail themselves of the Corporation’s physical and online platforms for claiming their trapped deposits.

“The online claim verification platform has been incorporated into the Claim Page on our website (www.ndic.gov.ng) to facilitate processing of claims from the comfort of depositors’ houses and offices,” he said.

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