NDIC urges farmers to embrace insurance policies to enhance their produce

Emma Ujah, Abuja Bureau Chief

The Nigeria Deposit Insurance Corporation (NDIC) has declared 100 percent liquidation dividends in 20 failed banks and invited depositors of those banks to come forward with their claims.

The Director of Corporate Communications and Public Affairs, Dr. Bashir Nuhu, disclosed this, yesterday, at the on-going Abuja- International Trade Fair.

He said, “The implication of this is that, through our dogged liquidation activities, the Corporation has realised enough funds to fully pay all depositors of the banks.”

The affected banks are ABC Merchant Bank Limited; Allied Bank of Nigeria; Alpha Merchant Bank Plc.; Amicable Bank of Nig. Limited; Commerce Bank; Commercial Trust Bank Limited; Continental Merchant Bank Plc.; Cooperative & Commerce Bank Plc.; and Eagle Bank;

The rest were: Financial Merchant Bank Limited; Icon Limited (Merchant Bank); Ivory Merchant Bank; Kapital Merchant Bank Limited; Mercantile Bank of Nig. Plc.; Merchant Bank of Africa Limited; Nigeria Merchant Bank Plc.; Pan African Bank Limited; Premier Commercial Bank Limited; Progress Bank of Nigeria; and Rims Merchant Bank Limited.

According to him, similar notices were also sent to creditors of seven DMBs in-liquidation as well as depositors and ex-staff of two MFBs and a PMB.

The Director added that NDIC’s determination to secure depositors’ funds, it would ensure the digitisation of all Microfinance Banks operating in the country.

He said, “Recently, through newspaper adverts, radio and television announcements and notices on our website and social media handles, the Corporation repeated its call to depositors of twenty closed banks in which it has declared full (i.e. 100%) liquidation dividends to come forward for verification and payment of their deposits that are in excess of the guaranteed sums.”

According to Dr. Nuhu, “The theme aligns with the corporation’s initiative that established the new cost saving digital platform known as the National Microfinance Bank Unified Information Technology (NAMBUIT), to address cost of operation and assist Microfinance Banks (MFBs) to build a user-friendly interface, flexible processing, aid decision making and increase financial inclusion in the country.

“The corporation is hereby fully committed in ensuring the MFBs are digitalized to towards achieving this noble plan.

“It is instructive to note the strong nexus between our mandate and the theme of this year’s fair.”

He added that by discharging its public policy objective of protecting depositors in the event of bank failures and by offering a measure of safety for the banking system generally, NDIC was creating enabling environment for the financial system to support the SME sub-sector of the eeconomy and promote an export ready market through an efficient payment system.

He said, “The Corporation protects depositors through the discharge of its mandate in four critical ways namely: by guaranteeing payment in the event of bank failure; by supervising the banks in conjunction with the Central Bank of Nigeria (CBN) to ensure that they are run in an efficient manner in line with extant laws and regulations; by resolving distress to reduce instances of failure; and through orderly and efficient liquidation of failed banks to prevent disruptions to the payment system.”

The President of the Abuja Chamber of Commerce and Industry, Dr. Mujtaba Abubakar, in his address charged the the NDIC to be vigilant against Ponzi scheme operations who were out to defraud members of the Nigerian public.


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