Cumulative dividend payments to 20 liquidated banks stands at about N45.45 billion as of July 2023, the Nigeria Deposit Insurance Corporation (NDIC) has disclosed.
In giving clarification to the payments, the corporation said the recipients of the dividends were not depositors in freshly liquidated entities, contrary to recent reports in a section of the media,, but of the 20 banks previously closed down due to the revocation of their operating licenses by the Central Bank of Nigeria (CBN) between 1994 and 2018.
The affected banks in-liquidation, the Director, Communication & Public Affairs of NDIC, Bashir Nuhu, said in a statement 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, and Prime Merchant Bank. Others are 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.
“The general public should be aware that the NDIC has fulfilled its commitment by paying the guaranteed sums owed to depositors,” Nuhu said.
“Additionally, the Corporation has made cumulative payments of liquidation dividends totalling N45.45 billion as of July 2023, representing amounts exceeding the guaranteed sums to depositors of the 20 banks,” he stated.
In the light of further recoveries from debtors of the liquidated banks, Nuhu said the NDIC recently announced an additional N16.18 billion in liquidation dividends to be paid to depositors, creditors, and shareholders of the 20 banks in liquidation.
Urging relevant stakeholders to visit any NDIC office or access the claims page on corporations website, www.ndic.gov.ng, to download, complete, and submit the verification form, Nuhu said completed forms should be returned along with the prescribed supporting documents to [email protected].
Nuhu stressed the importance of depositors to note that liquidation dividend represents the amount in excess of the insured sums paid by the NDIC to depositors of a liquidated bank.
This amount, he explained, was derived from recoveries made from the realisation of assets of failed financial institutions and cover payments to creditors and shareholders after the full payment to depositors of the defunct bank.