Leadership (Abuja)
11 November 2008
Nigeria Deposit Insurance Corporation (NDIC) has resolved N73.4 billion private deposits of 11 out of the 13 banks in liquidation.
Managing Director of the Corporation Mr. Ganiyu Ogunleye who disclosed this in Lagos at the Corporation special day at the Lagos Trade Fair said that the delay in resolving depositors' fund trapped in Fortune International Bank and Triumph Bank was because the owners of the two banks are still challenges the corporation's application for winding up order in courts.
He however said that the corporation would not be in position to reimburse the depositors of the two banks their money until these matters are resolved amicably.
Ogunleye stated that the rationale for adopting Purchase and Assumption was to ensure continued access to banking services by customers of the failed banks in the same business premises and encouraging banking habit and savings mobilisation, which are critical for economic development.
The NDIC boss further pointed out that the corporation has declared 100 per cent liquidation dividend of 34 of the 36 banks that failed before consolidation, stressing that this is full recovery of deposits in favour of depositors of 11 of the banks while dividend up to 90 per cent have been declared in favour of depositors of some of the remaining 24 banks.
He stated that the corporation has paid N3.3 billion or 63 per cent of N5.2 billion insured deposit of the 34 banks and N6.1 billion of N12 billion liquidation dividends already declared.
Ogunleye said that the NDIC failed to wind-up Savanna Bank and Peak Merchant Bank because the litigations over the revocation of their banking licenses are still pending before the courts.
He however said that the corporation has started the payment of additional dividend of N545 million to depositors of the defunct Cooperative and Commercial Banks (CCB).
Stating the procedure of payment, he directed depositors to visit the branches of nine agents' banks as listed in the advertisement.
The nine banks are Afribank, Fidelity Bank, Spring Bank Diamond Bank, First Bank, Zenith Bank, Bank PHB and United Bank for Africa (UBA).
He said that with the enactment of the NDIC Act 16, 2006, the deposit insurance coverage which was fixed at N50, 000 per depositor at the inception of the corporation has been increased to N200, 000 per depositor.
He stated that the NDIC's extension of deposit coverage to micro finance banks and Primary Mortgage Institutions with effect from January 2008 was apart of measure of engendering increased confidence in the financial system.
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