NDIC Announces N61.63bn Payout To Failed Banks' Stakeholders

NDIC Announces N61.63bn Payout To Failed Banks’ Stakeholders

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The Nigeria Deposit Insurance Corporation (NDIC) plans to disburse N61.63 billion as liquidation dividends to depositors, creditors, and shareholders of 20 liquidated banks.
This was made known in a statement by NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, who emphasized the Corporation’s commitment to fulfilling obligations to stakeholders affected by the closure of these banks.

The statement highlights the Corporation’s fulfillment of guaranteed sums owed to depositors, with cumulative payments exceeding N45.45 billion as of July 2023. Moreover, an additional N16.18 billion in liquidation dividends is set to be disbursed, stemming from recoveries from debtors of the liquidated banks.

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The closure of these 20 banks, attributed to the revocation of their operating licenses by the Central Bank of Nigeria between 1994 and 2018, has prompted the NDIC to sell off assets and collect owed debts to facilitate repayments to stakeholders.

The announcement further elaborated on the process, indicating that the Corporation reimburses eligible depositors up to insured maximum amounts, and for claims surpassing these sums, stakeholders would receive liquidation dividends on a pro-rata basis from the recovered assets. Notably, payments to creditors and shareholders are made after satisfying all depositors’ claims.

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The statement also listed the banks covered in this exercise, shedding light on the financial institutions affected, including Liberty Bank, City Express Bank, Assurance Bank, and more. This move signifies a step in addressing the fallout of these closures, reflecting the NDIC’s efforts to honor its commitments to the affected stakeholders.

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