The Nigeria Deposit Insurance Corporation (NDIC) has announced the disbursement of N16.18 billion in liquidation dividends to depositors, creditors, and shareholders of 20 banks that are in liquidation.
This announcement follows a commendable streak of recoveries from debtors and successful realizations of assets of the defunct banks.
Bashir Nuhu, the Director of Communication and Public Affairs at NDIC, conveyed this development through an official statement on Monday.
According to the statement, the corporation has already initiated the verification and payment processes for the stakeholders covered by these declarations, with a pledge to complete the payouts within 30 days, starting from September 28.
This recent announcement builds upon previous disbursements, with the NDIC having distributed a cumulative sum of N45.45 billion as liquidation dividends for the 20 banks as of July 2023.
These dividends represent a welcome relief to those who have been affected by the closure of these banks over the years.
The list of closed banks covered by this exercise includes Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), and Premier Commercial Bank, among others.
This financial move by NDIC is not only a testament to their commitment to protecting depositors and investors but also a reflection of their successful efforts in recovering funds from debtors and converting assets into liquid assets.
It is expected that this dividend distribution will bring a measure of financial relief to the affected stakeholders, while also demonstrating the effectiveness of regulatory measures in Nigeria’s banking sector.
AIICO Insurance Boosts Infrastructure Development with 5% Stake in InfraCredit
AIICO Insurance Plc has acquired a five percent shareholding in Infrastructure Credit Guarantee Company Limited (InfraCredit).
This strategic investment positions AIICO as the second domestic institutional investor admitted by the infrastructure credit guarantee institution, following Leadway Assurance Plc.
The infusion of capital from AIICO is set to elevate InfraCredit’s paid-in capital base to an impressive $175.14 million (approximately NGN 148.55 billion), translating into an aggregate guarantee issuing capacity of up to NGN 742.77 billion (about USD 875.7 million).
This equity injection will become part of InfraCredit’s core capital, enhancing its guarantee issuing capacity and contributing to the sustenance of its coveted ‘AAA’ credit rating.
InfraCredit, known for deploying innovative credit enhancement solutions, has been pivotal in mobilizing private sector financing for infrastructure projects across various sectors of the Nigerian economy.
AIICO’s investment underscores its commitment to bridging the infrastructure gap in the country, marking the evolution of a long-term partnership with InfraCredit.
Babatunde Fajemirokun, the Chief Executive Officer of AIICO Insurance, emphasized the company’s dedication to supporting infrastructure development.
He stated, “This investment is the evolution of what we at AIICO Insurance believe will be a long-term partnership with InfraCredit. Over the past two years, AIICO Insurance has invested in InfraCredit guaranteed bonds and participated in novel financing arrangements promoted by the company to bring infrastructure investment to areas that have been significantly underserved.”
The Chairman of the InfraCredit Board of Directors, Sanjeev Gupta, welcomed AIICO as a new shareholder and highlighted the importance of fostering a strong partnership between the public and private sectors.
Gupta said, “AIICO’s investment is in line with our vision of creating a strong partnership between the public and private sectors. This partnership aims to attract private sector capital for infrastructure financing sustainably.”
Chinua Azubike, the CEO of InfraCredit, expressed enthusiasm about AIICO’s admission as the second private domestic institutional investor.
Azubike stated, “The admission of AIICO Insurance, the second private domestic institutional investor in InfraCredit, reinforces the confidence in the sustainability of InfraCredit’s unique business model.”
The AIICO Insurance equity investment is expected to further strengthen InfraCredit’s core capital base, expand its guarantee capacity, and facilitate deeper market penetration.
This collaboration aims to advance sustainable finance for impactful infrastructure projects in Nigeria, aligning with the nation’s broader goals for economic growth and development.
Resilience Amid Challenges: Nigerian Insurance Giants Report 165% Surge in Profits
Nigeria’s Insurance Sector Surges: Premium Income Reaches Record High of N551.4 Billion in Q2 2023
Naira6 days ago
Black Market Dollar to Naira Exchange Rate Today, February 26th, 2024
Naira2 days ago
Black Market Dollar to Naira Exchange Rate Today, March 1st, 2024
Naira4 weeks ago
Dollar to Naira Black Market Today, February 5th, 2024
Forex3 weeks ago
CBN Mandates Nigerian Banks to Pay International Transfers in Naira
Fintech2 days ago
OPay Urges Customers to Complete BVN, NIN Verification Following CBN Directive
Naira4 weeks ago
Dollar to Naira Black Market Today, February 6th, 2024
Cryptocurrency3 days ago
Binance Disables Naira Feature to Halt Possible Capital Outflow
Naira3 weeks ago
Dollar to Naira Black Market Today, February 8th, 2024