The Nigerian Deposit Insurance Corporation, NDIC, says it has paid a cumulative insured sum of N1.084 billion naira to 29,573 depositors of closed
Microfinance Banks and 4 Primary Mortgage Banks as of September 22nd.
The Managing Director of the Corporation, Bello Hassan, made the revelation while addressing the press during the NDIC Special Day event at the 18th ongoing Abuja International Trade Fair.
Mr Hassan explained that the NDIC commenced the payment of the cumulative insured sums to depositors following the revocation of licenses for 179 MFBs and PMBs by the Central Bank of Nigeria, (CBN).
He informed that while payments are still ongoing, depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.
The NDIC boss reiterated that the Corporation’s activities of supervising banks, plus its monitoring and overseeing activities, serve as a consumer protection mechanism for depositors.
He said the Corporation is also currently in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 other closed banks.
Mr Hassan advised the general public to be aware of illegal fund managers, Wonder Banks and Ponzi Schemes, not insured by the NDIC.
He said, ”These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many. It is important to note that these wonder banks are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme.
”Members of the public are, therefore, advised to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country
