NDIC pays N6.82bn to depositors of closed banks.

The Nigeria Deposit Insurance Corporation has  paid a total of N6.82bn to 528,212 insured depositors of closed banks as of June 20, 2013, the Chief Executive Officer, NDIC, Alhaji Umaru Ibrahim, has said.

According to Ibrahim, the amount is N0.14bn higher than the N6.68bn the agency had paid to 527,942 insured depositors of closed banks as of December 31, 2011.

He said, “It is on record that the NDIC had paid cumulative insured deposits of N6.82bn to 528,212 insured depositors of closed banks as of June 20, 2013 as against N6.68bn paid to 527,942 insured depositors as of December 31, 2011.”

Similarly, the NDIC boss said it had paid a total sum of N2.520bn to 75,520 depositors of 95 out of 103 closed microfinance banks as of June 30, 2013.

In the same vein, the CEO said the sum of N73.589bn had been paid as liquidation dividend to 250,209 depositors of Deposit Money Banks as of June 30, 2013.

Ibrahim, who stated this in his keynote address during the NDIC special day at the ongoing Lagos International Trade Fair, further disclosed that a total of 14 out of the 34 banks in liquidation prior to 2006 had declared a final dividend of 100 per cent of their total deposits.

This, he said, indicated that all depositors of the affected closed banks had fully recovered their deposits.

Ibrahim, who was represented by the Executive Director, Corporate Services, Mrs. Lola Abiola-Edewor, noted that the management was confident that its recent rebranding package would help the corporation to construct fresh and positive perception among the numerous depositors and stakeholders across the country.

He said that the NDIC re-branding initiative was part of its strategic re-engineering to review the process, procedures and systems of the corporation in order to effectively discharge its mandate.

According to him, the development will help the corporation to occupy a prime spot in the hearts of the depositors and other stakeholders who would continue to trust the NDIC towards its abiding commitment to protect their interests and hard  earned deposits.

The CEO said the continuous participation of the NDIC in the Lagos International Trade Fair since 2002 was informed by its commitment to reach out to stakeholders in the quest to enhance public awareness on the corporation’s mandate and activities.

He said, “In order for the new NDIC brand to continue to efficiently and effectively  deliver on its mandate and also be a beacon of hope and a bastion of trust and reliability to the average Nigerian depositors, the NDIC Act would need to be fortified in view of developments in the international financial system in general, and the Nigerian financial service industry in particular.

“I am pleased to inform you that the NDIC had proposed amendment to the current Act. The amendments are aimed at strengthening the corporation’s supervisory capabilities and addressing other challenges in the area of liquidation of failed financial institutions.

“The amendments are also meant to ensure compliance with the core principles for effective deposit insurance systems.

“In order to facilitate the process of the amendment, the NDIC held a retreat with relevant committees of the National Assembly during the first quarter of this year. I am pleased to report that the first reading on the proposed amendment bill took place on the floor of the Senate on 25th of last month.”

According to Ibrahim, the corporation was established under NDIC Act 2006 to protect depositors’ funds and provide a financial safety net for the banking industry.

He, however, said that in the event of closure of a bank, depositors of deposit money banks are entitled to claim up to a maximum guaranteed sum of N500,000 each and N200,000 each for depositors of MFBs and primary mortgage banks.

He stressed that depositors with claim above those insured amount were paid dividend during the liquidation process of the closed banks.

http://www.punchng.com/business/money/ndic-pays-n6-82bn-to-depositors-of-closed-banks/