NDIC Pays off 526,414 Depositors of Closed DMBs, MFBs


The Nigeria Deposit Insurance Corporation (NDIC) has paid off no fewer than 526,414 depositors of closed Deposit Money Banks (DMBs) and Micro Finance Banks (MFBs) since its inception 30 years ago.

The Managing Director of the corporation, Alhaji Umaru Ibrahim, said this at a news conference to commemorate its 30th anniversary in Abuja on Friday.

Umaru, represented by Dr Sunday Oluyemi, the corporation’s Director, Communication and Public Affairs, said the organisation had also paid more than N70.53 million to 869 depositors of closed Primary Mortgage Banks (PMBs).

He said that a cumulative sum of N8.25 billion and N2.97 billion was paid to the DMB and MFB depositors as insured amounts.

The managing director disclosed that 53 deposit banks, 325 micro finance banks and 51 primary mortgage banks had been liquidated without disruption to the nation’s payment system.

Umaru said the corporation was currently providing deposit insurance cover to 27 deposit money banks, 918 micro finance banks, 34 primary mortgage banks and two non-interest banks.

“The corporation is identified with ensuring that depositors of liquidated banks suffered little loss or pain.

“NDIC in collaboration with the CBN has adopted multiple resolution option to resolve failures in the system.

“To date, a cumulative amount of over N28.112 billion was recovered from debtors of failed deposit banks, N129.10 billion for MFBs and N300 million from liquidated primary mortgage banks,” he said.

Umaru noted that the corporation had introduced the Deposit Insurance System (DIS) courses in no fewer than 10 universities to foster awareness and enhance depositors and consumer protection.

He assured stakeholders in the banking system of the corporation’s readiness to ensure high standard stability in the system in line with its core values of honesty and professionalism.

The News Agency of Nigeria reported that DMBs are resident depository corporations and quasi-corporations which have many liabilities in the form of deposits payable on demand, transferable by cheque.

A primary mortgage institution is usually a bank, either for commercial or savings and loans, while micro finance bank is any company licensed by the Central Bank of Nigeria (CBN) to carry out business of providing micro finance services such as savings, loans, domestic funds transfer, and other financial services. (NAN)