Recovered N28.84 billion from Debtors of Failed Banks.
Nigeria Deposit Insurance Corporation (NDIC), has on Tuesday disclosed, that it paid on the aggregate, the sum of N11.50 billion to depositors, creditors, shareholders and other stakeholders of closed financial institutions as at 31st December, 2017.
The NDIC Managing Director/Chief Executive, Umaru Ibrahim who made the disclosure in Abuja, said the payment of insured sums and liquidation dividends to the claimants of closed banks in 2017, was made possible due to the improvement in the Corporation’s processes and procedures.
Ibrahim stated these on the occasion of the NDIC Special Day, at the 13th Abuja International Trade Fair, with the theme, “Enhancing SMEs in Agribusiness through Innovative Technology”.
The MD who was represented by the Director, Enterprise Risk Management, Peter Nggada, noted that presently, each depositor of Deposit Money Banks (DMBs), Non-Interest Banks (NIBs) and Primary Mortgage Banks (PMBs), is insured up to the maximum limit of N500,000.00; while the maximum insured coverage for depositors of Micro Finance Bank (MFBs) is N200, 000.00.
He stressed however, that depositors who have funds in excess of the insured limits are paid dividends from the liquidation of failed banks depending on the quality of their assets and the outcome of debt recoveries by the Corporation.
According to him, “Apart from the DMBs, PMBs and MFBs, the Corporation also provides Deposit Insurance Coverage to subscribers of Mobile Money Operators to the maximum limit of N500,000.00 through the Pass-Through Deposit Insurance Framework, in its drive to promote financial inclusion across the broad spectrum of the economy. This followed the licensing of 21 MMOs by the Central Bank of Nigeria (CBN).
“Another milestone achievement of the Corporation in 2017, was the declaration of 100 percent and final liquidation dividends to depositors of the defunct Eagle and Financial Merchant Banks (in-liquidation) which increased the number of banks for which a final dividend of 100 percent had been declared to 16.
“That means, that 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 said.
The NDIC boss added also, that 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 realised was used to pay liquidation dividends to the uninsured depositors of closed banks”, he remarked.
He announced that the total recoveries from debtors of failed banks by the NDIC in 2017 alone, amounted to N368.43 million, bringing the cumulative recovery from debtors to N28.84 billion.
