NDIC Distributes N16.18 Billion in Liquidation Dividends to Stakeholders of Defunct Banks

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.