…..Debunks Misleading Reports on Liquidated 20 Banks
The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that it had made cumulative payments of liquidation dividend totalling N45.45 billion representing amounts exceeding the guaranteed sums to depositors of the 20 liquidated banks as of July 2023.
The corporation made the clarification in a statement issued by its Director, Communication & Public Affairs, Bashir Nuhu, following the recent misleading news reports circulating on various social media with the headline “CBN Liquidates 20 Banks – NDIC (Names).”
It maintained that contrary to the misleading headline, the 20 banks mentioned in those reports were among the banks that had been previously closed due to the revocation of their operating licences by the Central Bank of Nigeria (CBN) between 1994 and 2018.
The corporation stated that it had continued to fulfil its mandate by paying the guaranteed sums owed to depositors, adding that apart from paying the affected customers their insured deposits in the liquidated banks, it has also made cumulative payments of liquidation dividends totalling N45.45 billion as of July 2023
The Director further stated: “In light of further recoveries from debtors of the liquidated banks, the Corporation has announced an additional N16.18 billion in liquidation dividends to be paid to depositors, creditors, and shareholders of the 20 banks in liquidation.”
He urged relevant stakeholders to visit any NDIC office or access the claims page on the corporation website, download, complete, and submit the verification form along with the prescribed supporting documents to the dedicated email address for the purpose.
The closed banks covered by this exercise include Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), and Premier Commercial Bank.
Others are North South Bank, and Prime Merchant Bank. Others are Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank in-liquidation
It’s important to note that liquidation dividend represents the amount in excess of the insured sums paid by the NDIC to depositors of a closed bank. This amount is derived from recoveries made from the realization of assets of failed financial institutions and covers payments to creditors and shareholders after the full payment to depositors of the defunct bank.
