NDIC Repays Depositors of 179 Closed Banks

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The Nigerian Insurance Corporation has announced that it has refunded depositors of 179 closed microfinance and four mortgage banks throughout the nation.

The Managing Director of the NDIC, Dr Bello Hassan, represented by the NDIC's Deputy Director of Communication, Hauwa Gambo, reiterated at the NDIC Special Day during the ongoing 45th Kaduna International Trade Fair that the corporation's main focus was on protecting depositors' funds in licensed banks in distress.

According to Hassan, the corporation has introduced the Single Customer View framework to expedite payment to depositors of liquidated banks while carrying out its statutory functions.

He mentioned that the NDIC has strengthened its partnership with the judiciary to speed up the prosecution of failed insured banks, leading to the resolution of prolonged cases of closed banks such as Fortune and Triumph Banks liquidation.

Hassan stated that the efforts have led to a substantial improvement in the debt recovery rate, enabling the corporation to announce 100% liquidation dividends to uninsured depositors from more than 20 deposit money banks.

He went on to say that the corporation has boosted collaboration with the judiciary to accelerate the prosecution of failed insured institutions, and this collaborative initiative has resulted in the resolution of protracted cases of closed banks like Fortune and Triumph Banks in liquidation.

Moreover, they have employed alternative dispute resolution mechanisms and out-of-court settlements, reinvigorating their liquidation activities. These actions have substantially enhanced the debt recovery rate, enabling them to declare 100% liquidation dividends to uninsured depositors of over 20 deposit money banks in liquidation.

According to him, the NDIC has been compensating the clients of the 179 microfinance banks and four primary mortgage banks affected promptly, with the deployment of digital remote payment strategies to facilitate electronic funds transfers to verified depositors’ alternate bank accounts.

In addition, the NDIC launched the ‘Deposit Tracer’ in partnership with mobile operators to address the apathy among depositors with small balances, allowing them to access their unpaid balances through mobile accounts.

He advised depositors of banks in liquidation to make use of the various initiatives by the corporation to claim their funds trapped in closed banks.

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