NDIC Reimburses Depositors of 179 Closed Microfinance Banks – MD

The Nigeria Deposit Insurance Corporation (NDIC) has successfully reimbursed depositors of 179 recently closed Microfinance Banks (MFBs) and 4 Primary Mortgage Banks (PMBs), according to the Managing Director/Chief Executive, Mr. Bello Hassan.

The Corporation achieved this remarkable feat by utilizing digital remote payment strategies, ensuring timely payment of insured sums to depositors.

Speaking at the NDIC’s Special Day during the ongoing 45th Kaduna International Trade Fair on February 29, 2024, Mr. Hassan emphasized the Corporation’s commitment to safeguarding Nigerian depositors’ funds and promoting financial stability in the country.

He highlighted the significant improvements in NDIC’s processes to ensure swift payment of insured sums to depositors in the event of bank failure.

The NDIC has also introduced the Single Customer View (SCV) framework to expedite payment to depositors of closed banks, and enhanced collaboration with the judiciary for speedy prosecution of failed insured institutions.

These efforts have resulted in resolving long-drawn cases of closed banks such as Fortune and Triumph Banks in liquidation.

To further enhance transparency and accountability, the Corporation has strengthened its systems, processes, and procedures, enabling it to declare 100% liquidation dividends to uninsured depositors of more than 20 deposit money banks in liquidation.

In addition to these measures, the NDIC has launched the “Deposit Tracer” initiative in partnership with a Mobile Money Operator, allowing depositors to access their unpaid balances through mobile accounts.

The Corporation has also deployed a mobile application and updated its website for online claims processing, offering depositors the option of virtual verification during payout exercises.

Mr. Hassan encouraged depositors of banks in liquidation to utilize these initiatives to claim their funds trapped in closed banks and emphasized that the NDIC remains committed to protecting Nigerian depositors and striving to be one of the best deposit insurers globally.