Microfinance Bank

NDIC to Refund Owners of Money Stuck in Defunct Commercial, Micro-finance Banks

The Nigeria Deposit Insurance Corporation, NDIC has assured that depositors whose money were stuck in 23 distressed banks across the country would be refunded.

The NDIC expressed readiness to begin the reimbursement to affected account owners. 

The Managing Director of NDIC, Bello Hassan gave the hint on Thursday, during the NDIC day at the ongoing 43rd Kaduna International Trade Fair, Kaduna.

Investors King learnt that the event was organised by the Kaduna Chambers of Commerce Industries, Mines & Agriculture. 

Hassan, represented by the Director of Communication and Public Affairs, Bashir Nuhu, noted that the issue of failed banks will cease in the country as the corporation is carrying out its responsibility of protecting banks insured by it and ensuring financial stability.

The NDIC boss explained that insurance covers Microfinance banks, commercial banks, non-interest banks asking depositors to present deposit proofs.

He pointed out that each depositor was insured up to N500,000 in the event of failure while N2m insures coverage for Microfinance Banks depositors.

Hassan, however, explained that those who have funds in excess of the insured limits will be paid dividends from the proceeds of assets and debt recovery gathered from the defunct banks.

Revealing the mode of payment claims, NDIC stated that verification will be done physically and on their online platforms.

“It is on this note that I like to call on depositors of banks in liquidation to avail themselves of the Corporation’s physical and online platforms for claiming their trapped deposits.

“The online claim verification platform has been incorporated into the Claim Page on our website (www.ndic.gov.ng) to facilitate processing of claims from the comfort of depositors’ houses and offices.”

Hassan further listed the insured banks of which its depositors would be refunded as; 

Microfinance Banks (MFBs), Deposit Money Banks (DMBs), Non-Interest Banks (NIBs), Primary Mortgage Banks (PMBs), subscribers of Mobile Money Operators (MMOs) and the recently licensed Payment Service Banks (PSBs).

“Presently each depositor of DMBs, NIBs, PMBs and subscribers of MMOs are insured up to the maximum limit of N500,000.00 per bank in the event of failure; while the maximum insured coverage for depositors of MFBs is N200,000.00 per bank,” he added.

The NDIC Boss further stated that the corporation had declared 100 percent liquidation dividends to depositors of 22 DMBs in liquidation.

This, according to him will afford the agency enough to funds to pay all affected depositors of the 23 DMBs 100 percent of their money.

“The Corporation has since moved on to commence payment of liquidation dividends to creditors and shareholders of some of the banks, indicating that their depositors can access their full payment whenever they file their claims.

“NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability,” he said.

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