THE Nigeria Deposit Insurance Corporation (NDIC) said it has so far paid the sum of N69.90 billion as aggregate dividend to the depositors of the 48 liquidated banks across the country.  Alhaji Umar Ibrahim, NDIC managing director, said various amounts were also paid to the depositors of the closed commercial and microfinance banks last year.
Ibrahim, who spoke at the on-going Kaduna Trade Fair, also stated that NDIC had also paid about N7.6 billion representing 42.6 per cent of the insured deposits out of the N17.9 billion total insured amount to the depositors of the closed banks.  Represented by Prince Aghatese Erediuwa, Ibrahim added that a total of N641.6 million had been paid to the depositors of the 84 closed microfinance banks (MFBs) across the country, while arrangements were being made to dispose of the assets of the affected MFBs for the payment of depositors’ uninsured funds.
“As a deposit insurer, the corporation guarantees payment to depositors in the event of failure of an insured bank,” he said. “At present, the maximum insurance limit is N500, 000 for deposit money banks and N200, 000 for microfinance banks and primary mortgage institutions, which were recently increased from the coverage limits of N200,000 and N100,000 for deposit money banks and microfinance banks and primary mortgage institutions, respectively.
“The corporation had as at December 2010 paid out about N7.6 billion insured deposits out of N17.9 billion total insured amount, representing 42.6 per cent of total insured claims, to the depositors of 48 closed banks. Also, just last year, the corporation had course to embark on the liquidation of 103 microfinance banks, following the revocation of their licences by the CBN.
“The first round of pay out, which was done through Intercontinental Bank Plc, took place in November 2010. As at December 2010, a total of N641.6million was paid to depositors of 84 closed microfinance banks as insured sums, while arrangements to dispose of the assets of the affected MFBs for the payment of the uninsured sums had already commenced in earnest with adverts placed in major dailies for sale of the fixed assets of some MFBs.”
Ibrahim said as at the end of December 2010, the corporation had paid an aggregate dividend of N69.90 billion for the 48 banks in liquidation. Of the 48 banks in liquidation, a final dividend of 100 per cent of total deposits had been declared for 11 banks, indicating that all the depositors of those banks would have fully recovered their deposits.
“Liquidation dividends have also been paid to some general creditors and shareholders of some closed banks,” he said. “As at December 2010, the sum of N1.5 billion was declared to 439 creditors and the corporation had paid the sum of N848.127 million to creditors who filed their claims. As for the shareholders of the closed banks, a total of N1.28 billion was paid to shareholders of three closed banks, namely, Alpha Merchant Bank, Nigeria Merchant Bank and Pan Africa Bank, out of a total of N1.51 billion declared.”