The Nigeria Deposit Insurance Corporation (NDIC) has said that it will pay additional N16.18 billion in liquidation dividends to shareholders and creditors of 20 banks whose operating licences were withdrawn by the Central Bank of Nigeria between 1994 and 2018, and liquidated by the corporation. The additional payment, the NDIC said’ is in light of further recoveries from debtors of the liquidated banks.
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.
In a statement issued in Abuja and signed by its Director of Communications and Public Affairs, Mr. Bashir Nuhu, the NDIC said that it had earlier paid cumulative liquidation dividends of N45.45 billion to the shareholders and creditors of the 20 liquidated banks as at July, 2023.
The closed banks covered by this exercise, NDIC said, 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), Premier Commercial Bank, 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.
The NDIC clarified that contrary to the misleading reports that it has just liquidated 20 banks, that 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. It said that the NDIC had fulfilled its commitment by paying the guaranteed sums owed to depositors of the 20 liquidated banks.
The corporation urged relevant stakeholders to visit any NDIC office or access the claims page on its website, www.ndic.gov.ng, to download, complete, and submit the verification form along with the prescribed supporting documents, and submitted to the dedicated email: claimscomplaints@ndic.gov.ng.