From Tony Osauzo and Ighomuaye‎ Lucky, Benin

The Nigeria Deposit Insurance Corporation (NDIC) announced yesterday that it has paid a cumulative amount of N11.76 billion as insured sums to 535, 815 depositors of closed banks since its inception till date.

It added that a total of N101.7billion had been paid as uninsured sum as at June 30, 2021 while a total of N6.16 billion had been paid as liquidation dividend to 1,955 creditors and shareholders of closed banks.

Bello Hassan, Managing Director/Chief Executive Officer of NDIC, made the disclosure during the corporation’s special day at the 2021 Edo trade fair in Benin City.

Represented by Udofot Ukpong, Senior Manager NDIC, Benin zonal office, Hassan restated their mandate of protecting depositors, supervising banks, distress resolution and bank liquidation and stressed that a sound and stable financial system is the pivot upon which the economic system of any nation rests.

“Instructively, the corporation has declared full payment of insured and uninsured sums to depositors of 18 banks in liquidation. This implies that the corporation has realized liquidation dividend to pay all depositors of the banks who present themselves for payment”, he said.

‎Besides, the NDIC boss disclosed that the Corporation has responded to innovations in the financial system by extending deposit insurance cover to Microfinance Banks (MfBs), Primary Mortgage Banks (PMBs), Mobile Money Services (MMOs), Payment Service Banks (PSBs) in order to engender confidence in the financial system.

The managing director, while speaking on the theme of the fair, “Expanding the frontiers of MSMEs through collaboration and capacity building”, opined that this is the time to promote the Micro, Small and Medium Enterprises sector as the key component towards revitalizing the nation’s economy.

He explained that the NDIC has been participating in major trade fairs across the country since 2007 not only to showcase its landmark achievements but also to enhance public awareness on its core mandate.

The NDIC boss, therefore, cautioned citizens not to patronize the services of Ponzi schemes and illegal fund managers who he termed “wonder banks”, noting that they are not licensed by the Central Bank of Nigeria as deposit-taking institution and are not covered by the corporation.

Earlier, Aina Omo-Ojeonu, President of Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), commended NDIC for the public enlightenment, tasking it to protect depositors.

“Before now a lot of people did not know what NDIC was but your presence has changed the narrative. It makes us confident that there is an organization that is taking care of our money. We work hard for this money and want it to be protected. We don’t want a situation where we put our money in the bank and do not get”, Omo-Ojeonu said.

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Source: news