NDIC Reveals 20 Failed Banks, Advice Depositors to come For Their Money as CBN Restores One License
In a recent statement, the Nigeria Deposit Insurance Corporation (NDIC) disclosed that depositors, creditors, and shareholders of 20 failed banks in Nigeria are set to receive an additional N16.18 billion in liquidation dividends. This latest payment brings the total dividends paid to depositors to N61.63 billion, surpassing the insured sums and highlighting the continued commitment of the NDIC to fulfill its obligations.
Background:
Contrary to recent reports suggesting the closure of new banks, the NDIC clarified that the 20 failed banks in question were among those that had shut down between 1994 and 2018. The closure was a result of the revocation of their operating licenses by the Central Bank of Nigeria (CBN).
Detailed Information:
The NDIC Director of Communications and Public Affairs, Bashir Nuhu, addressed the misinformation in a statement, emphasizing that there are no new failed banks in Nigeria. The liquidation dividends are a result of further recoveries from debtors of the liquidated banks.
The cumulative payments of liquidation dividends as of July 2023 amounted to N45.45 billion. With the additional N16.18 billion, the NDIC aims to provide financial relief to depositors, creditors, and shareholders affected by the closure of these banks.
List of 20 Failed Banks:
- Liberty Bank
- City Express Bank
- Assurance Bank
- Century Bank
- Allied Bank
- Financial Merchant Bank
- Icon Merchant Bank
- Progress Bank
- Merchant Bank of Africa (MBA)
- Premier Commercial Bank
- North-South Bank
- Prime Merchant Bank
- Commercial Trust Bank
- Cooperative and Commerce Bank
- Rims Merchant Bank
- Pan African Bank
- Fortune Bank
- All States Trust Bank
- Nigeria Merchant Bank
- Amicable Bank
Verification Process:
Earlier this year, the NDIC initiated the verification of insured depositors of Peak Merchant Bank in liquidation. This process allows depositors to confirm their account information and balances with the bank at its closure. Depositors are advised to visit the bank’s old premises or the nearest NDIC office with proof of account ownership and identification documents for the verification exercise.
Conclusion:
The NDIC reaffirms its commitment to its duty of deposit guarantee and reimbursement, ensuring that affected depositors receive their entitled sums. This announcement provides clarity on the status of the failed banks and emphasizes the importance of accurate information in financial reporting.
