According to the Nigeria Deposit Insurance Corporation, it has liquidated at least 500 deposit money, microfinance, and primary mortgage banks whose licenses had been revoked by the Central Bank of Nigeria.
The corporation also stated that it was currently settling the liquidation dividends of bank depositors.
Galadima Gana, the NDIC’s Director, Insurance and Surveillance Department, revealed this on Friday at the 2021 Financial Correspondents Association of Nigeria workshop in Ibadan.
According to Mr Gana, the corporation closed 325 MFBs, 50 PMBs, and 49 DMBs whose licenses were revoked by the CBN with minimal impact on the banking sector’s stability and confidence.
Mr Gana also stated that the NDIC had paid N8.27 billion in total to insured depositors of DMBs, N3.38 billion to insured depositors of MFBs, and N11 billion to insured depositors of PMBs.
He stated that payments to uninsured depositors, creditors, and DMB shareholders totalled N100.85 billion, N1.27 billion, and N4.83 billion, respectively.
He stated that this accounted for 51.07 per cent, 73.13 per cent, and 92.81 per cent of the respective amounts.
On the sidelines of the event, the NDIC’s Managing Director, Bello Hassan, explained that the corporation was settling the liquidation dividends of the banks’ depositors.
”One of our mandates is also to liquidate licence deposit institutions whose deposit has been revoked by the CBN. So you have various categories that are currently in liquidation, the Deposit Money Banks (DMBs), Micro Finance Banks (MFBs), and Primary Mortgage Banks (PMBs)”, Mr Hassan explained. “As liquidator, what we do immediately there is (a) revocation of licence is to pay the maximum insured amount”.
Following that, he stated that the corporation “proceeded to recover the loans and advances” made by the liquidated institutions prior to revocation, as well as “realize the assets” left behind “so that we can pay it to the depositors”.
“We only pay the maximum insured amount at the point of liquidation, then we begin to pay depositors, and then we wind up,” Mr Hassan added; “but the payment is currently ongoing”.