Victims’ of closed deposit money banks settled – NDIC CEO

By Amara Christa

Managing Director/Chief Executive Officer of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim has said the corporation has paid all the victims of the 18 closed Deposit Money Banks monies trapped in such banks. He made this known yesterday during the NDIC Special Day at the on-going 31st Enugu International Trade Fair, organised by the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) with the theme ‘Advancing the Growth of SMEs through Corporate Governance for Rapid Economic Development.’

He said as provided in the NDIC Act 2006, when insured financial institutions failed, depositors of Deposit Money Banks (DMBs), Non-Interest Banks (NIBs), Primary Mortgage Banks (PMBs), and subscribers of Mobile Money Operators (MMOs) would be reimbursed up to a maximum limit of N500,000, while the maximum insured coverage for depositors of Microfinance Banks (MFBs) is N200,000. He said the insured limits are periodically reviewed by the Board of the Corporation to make sure that majority of depositors are covered, adding that depositors who have balances in excess of the insured sums are regularly paid the excess as liquidation dividends, which often are extended to creditors and shareholders of the closed banks.

“To date, the NDIC has fully paid all the depositors of the 18 closed Deposit Money Banks all their monies, both insured and uninsured, that were trapped in such banks,” he said through the Zonal Controller, NDIC Enugu Zonal Office, Mrs. Vera Ogbo-Ikwue.

He however warned depositors in the country to stop patronising ‘Wonder Banks’ which offer mouth-watering interest rates to dupe unsuspecting members of the public in the name of investment.

He further advised depositors to always patronise insured banking institutions that display the NDIC stickers in their banking halls or entrances, saying the ‘wonder banks’ are not licensed by the Central Bank of Nigeria (CBN), or with the NDIC deposit insurance scheme.

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