The Nigeria Insurance Corporation has successfully refunded deposits to 179 microfinance and four primary mortgage banks nationwide. Dr. Bello Hassan, the Managing Director of the NDIC, made this announcement on Thursday during the NDIC Special Day at the ongoing 45th Kaduna International Trade Fair.
Represented by Hauwa Gambo, the NDIC’s Deputy Director of Communication, Hassan emphasized the corporation’s commitment to safeguarding the funds of Nigerian depositors in distressed licensed banks. He highlighted the implementation of the Single Customer View framework, which expedites payments to depositors of closed banks as part of the corporation’s statutory functions.
Hassan also noted increased collaboration with the judiciary to facilitate the swift prosecution of failed insured banks, leading to the resolution of long-standing cases such as the liquidation of Fortune and Triumph Banks. These efforts have notably enhanced debt recovery rates, enabling the corporation to declare 100% liquidation dividends to uninsured depositors from over 20 deposit money banks undergoing liquidation.
The NDIC chief highlighted the corporation’s success in reimbursing depositors during the recent closure of 179 microfinance banks and four primary mortgage banks, ensuring the prompt payment of insured sums.
He said, “Our priority at NDIC is the protection of Nigerian depositors. We are dedicated to safeguarding depositors’ funds from the adverse effects of bank failure
“The corporation has introduced the Single Customer View framework to expedite payment to depositors of closed banks.
“The Corporation has enhanced collaboration with the judiciary for speedy prosecution of failed insured institutions.
“This concerted effort has resulted in resolving long-drawn cases of closed banks such as Fortune and Triumph Banks in liquidation.
“Moreover, we have utilised Alternative Dispute Resolution mechanisms and out-of-court settlements, revitalising our liquidation activities.
“These efforts have significantly improved our debt recovery rate, enabling us to declare 100 per cent liquidation dividends to uninsured depositors of more than 20 deposit money banks in liquidation.
“The Corporation achieved remarkable success in reimbursing depositors during the recent closure of 179 Microfinance Banks and 4 Primary Mortgage Banks, ensuring timely payment of insured sums.”
Hassan also said that the NDIC deployed digital remote payment strategies to facilitate electronic funds transfers to verified depositors’ alternate bank accounts.
To address the apathy among depositors with small balances, he said the NDIC launched the ‘Deposit Tracer’ in partnership with Mobile Operators which allows depositors to access their unpaid balances through mobile accounts.
He urged depositors of banks in liquidation to utilise the various initiatives by the corporation in claiming their funds trapped in closed banks while assuring that the NDIC remained committed to protecting Nigerian depositors.
