…Advises Traders, Business Entities, General Public Not To Transact Business With Wonder Banks, Ponzi Scheme Operators
The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has disclosed that the corporation has paid a total of N1.39 billion to 36,163 customers of 110 failed Microfinance Banks (MFBs) and three Primary Mortgage Banks (PMBs) in Nigeria.
Hassan disclosed this at NDIC, ‘Special Day’ at the 2023 Lagos International Trade Fair in Lagos recently.
He said that NDIC did not waste time in liquidating the failed institutions as the Corporation disbursed the insured sums to the affected depositors within a record time of three days after the banks failed.
He hinted that the payments of the statutory insured sums are still ongoing even as depositors with funds exceeding the insured limit would receive liquidation dividends after debts recovery and selling of the failed banks’ physical assets.
“The corporation is currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 banks in liquidation, including Allied Bank.
“Others are : Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank.
“Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank, and Merchant Bank,” he said.
He warned traders, business entities and the general public not to do business with wonder banks and Ponzi schemes, advising them to keep their funds in licensed financial institutions only.
The NDIC boss assured that the corporation will continue to resolve genuine cases of infractions and complaints concerning insured institutions in Nigeria.
He added that the essence of the above is part of NDIC’s efforts to enhance confidence in the financial system in the country.
The NDIC is a statutory body established by NDIC Act No. 16 of 2006 with the exclusive mandate of administering the Deposit Insurance System in Nigeria.
NDIC protects depositors and contributes to the stability of the financial system through effective supervision of insured institutions, provision of financial/technical assistance to eligible insured institutions, prompt payment of guaranteed sums and orderly resolution of failed insured financial institutions.
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