NDIC starts payment of N16.18 bln liquidation dividend to depositors of 20 failed banks
The Nigeria Deposit Insurance Corporation (NDIC) has announced the commencement of payments totaling N16.18 billion in liquidation dividends to depositors, creditors, and shareholders of 20 banks that have undergone liquidation.
This announcement comes as a result of substantial recoveries from debtors and the realization of assets from these banks in liquidation, the corporation said in a statement signed by its spokesman, Bashir Nuhu.
The NDIC has initiated a verification and payment process for stakeholders, which is set to be completed within 30 days, starting on September 28, 2023. This payout follows an earlier payment, totaling N45.45 billion in liquidation dividends, made in July 2023 in respect of the same 20 banks.
Stakeholders involved in this process are urged to visit any of the NDIC’s offices or the claims page on the corporation’s official website. Here, they can download and submit the verification form along with the prescribed supporting documents to the dedicated email address: claimscomplaints@ndic.gov.ng.
The 20 banks covered in 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), Premier Commercial Bank, North-South Bank, Prime Bank, 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.
Liquidation dividends represent the excess amount beyond the insured sums paid to depositors at a closed bank. This surplus is generated from recoveries made through the realisation of assets from failed institutions.
These dividends also encompass the amounts paid to creditors and shareholders of closed banks, in addition to payments made to depositors of such defunct banks.
The NDIC’s initiative to provide these liquidation dividends reflects its commitment to preserving the interests of depositors, creditors, and shareholders within the Nigerian banking industry. This payment signifies a vital step in restoring confidence and ensuring that stakeholders receive their due compensation.
