The NDIC, in a statement issued on Tuesday by its Director of Communication & Public Affairs, Bashir Nuhu, said the 20 banks were shut down by the CBN over various infractions and breaches of banking regulations, and that the NDIC was mandated to liquidate them and pay the depositors, creditors and shareholders.
The statement reads partly, “The Nigeria Deposit Insurance Corporation (NDIC) has clarified the reported liquidation of 20 banks by the Central Bank of Nigeria.”
It adds, “The Corporation said the alleged 20 banks were previously shut down between 1994 and 2018 over license revocation, noting that the sanction is not a recent one.”
The NDIC also said that it had paid a total of N45.45 billion as guaranteed sums to the depositors of the affected banks and that it had scheduled an additional payment of N16.18 billion as liquidation dividends to the depositors, creditors and shareholders.
The statement says, “The Corporation said, in meeting its obligation by July 2023, paid guaranteed sums to depositors, totalling N45.45 billion in liquidation dividends.”
It also says, “He said an additional N16.18 billion has been scheduled for depositors, creditors and shareholders.”
The NDIC urged the stakeholders of the liquidated banks to visit its offices or its website to verify and submit their claims and to contact its help desk for any inquiry or complaint.
The statement says, “The statement urged stakeholders in the highlighted banks to visit the NDIC offices or the website to verify and submit their claims.”
It also says, “The affected banks include, ‘Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, 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 in-liquidation.’”
The NDIC also explained that the liquidation of the banks was in line with its statutory mandate of ensuring the safety and soundness of the banking system and protecting the interests of the depositors and other stakeholders.
The statement says, “Nuhu noted that liquidation dividends exceed insured sums and cover payments to creditors and shareholders post full payment to depositors of defunct banks.”
It also says, “He said the liquidation of the banks was in the best interest of the banking sector and the economy at large.”
The NDIC is a federal agency established in 1988 to provide deposit insurance and guarantee services to depositors of licensed banks and other financial institutions in Nigeria. It also has the power to liquidate failed banks and recover debts owed to them.
(NAN)