Afrigather The Nigeria Deposit Insurance coverage Company (NDIC) on Saturday stated it has paid greater than N1.7 billion claims to insured depositors of failed establishments from recovered money owed.
Bello Hassan, managing director/chief government, disclosed this at it’s 2023 Editors’ discussion board in Lagos.
He stated the Company invigorated its restoration efforts, which led to substantial restoration of debt from banks in liquidation. “That’s the reason we have been capable of declare liquidation dividends for these banks,” he stated.
Hassan stated, “Typically early in Could 2023, we marketed that we wish to pay liquidation dividends to depositors, collectors in some establishments which are in liquidation, even shareholders.
“We now have efficiently recovered loads. We invigorated the processes by visiting clients that personal these banks and likewise by way of the sensitisation we had with our legal professionals which are representing us, we have been capable of win these instances, which led to the restoration of these money owed.”
Learn additionally:NDIC targets N400bn debt recovery to pay deposit insurance claims
He known as on clients who haven’t any Financial institution Verification Quantity (BVN) connected to their accounts, notably these Microfinance banks, to achieve out to NDIC at its places of work throughout the six geopolitical zones in order that they’ll get verified and “in order that we are able to pay them the insured quantity.”
The NDIC CEO stated the editors Discussion board serves as a consolidation of the Company’s ongoing efforts to deepen shut and cordial relationship with the management of the media trade, making certain that they proceed to work as companions in progress for the profitable implementation of the deposit Insurance coverage System in Nigeria, for the good thing about the individuals.
In response to him, the Deposit Insurance coverage System applied by the NDIC is a vital element of the nation’s monetary security web. The Company’s operations which focuses on minimising financial institution runs and financial institution failures by way of strict banking supervision, reimbursement of insured depositors within the occasion of financial institution failure, and orderly liquidation of failed banks, enhances the efforts of the Central Financial institution of Nigeria to realize a safe and secure banking system.
“In complementing the patron safety efforts of the CBN, now we have enhanced public consciousness on deposit insurance coverage and monetary literacy to scale back the speed at which small depositors are being defrauded, thereby enhancing confidence within the banking system;
“now we have invigorated our liquidation actions, and significantly elevated debt restoration charge resulting in the declaration of 100 per cent liquidation dividends to uninsured depositors of over 20 deposit cash banks in-liquidation in addition to funds to different stakeholders akin to collectors, ex-staff and shareholders; and now we have additionally improved our system, course of and procedures to advertise transparency and accountability in our operations, amongst different humble achievements,” he stated.
Learn additionally: NDIC to pay N16.18bn liquidation dividends of 20 failed banks
He stated the NDIC has enhanced collaboration with the bar and bench, resulting in speedy prosecution and extra knowledgeable judgements on failed banks instances, together with decision of long-drawn instances of closed banks akin to Fortune and Triumph Banks in-liquidation.
“We now have equally put in place coverage and framework for out-of-court settlement which has enabled us to resolve some hitherto protracted failed financial institution litigations,” he stated.
