Depositors of liquidated Nigerian banks get 3.3 billion Naira

Umar Ibrahim
Managing director of NDIC

Depositors of liquidated Nigerian banks get 3.3 billion Naira
Jack Acheme, Lagos

The Nigerian Insurance Deposit Corporation (NDIC) says it has paid the sum of 3.304 billion Naira out of 5.24 billion Naira to 35 banks in liquidation as at July 2011.

The Managing director of NDIC, Umar Ibrahim, at the Lagos international Trade Fair said the amount represented 63 per cent of the total deposit liabilities.

He said depositors and other claimants of the affected banks, which were closed during the same period, were paid 6.12 billion Naira out of the 16.85 billion Naira representing 37 per cent of the total value. Depositors were urged to come forth for their claims as 10 banks have been appointed to pay them.

The 10 Banks include Zenith Bank, United Bank for Africa (UBA), Union Bank, First Bank, Mainstreet Bank, Keystone Bank, Fidelity Bank, Wema Bank, Diamond Bank, and Enterprise Bank.

Total insured deposit

In the micro finance sector, Umar said the corporation has paid 2.024 billion naira representing 41 per cent of the total insured deposit of about 4.94 billion Naira to 69,000 depositors as at the end of July, 2011.

As at September 2010, operating licences of 103 banks were revoked because of technical insolvency.

The corporation together with an inter-agency committee, which includes CBN and EFCC, detected 440 illegal banks with fraud amounting to 106.94 billion naira.
Over 560,000 and 882 ligaments were involved and the committee has so far recovered 500 million Naira and had commenced verification and payment of investors.

Umar added that the corporation had improved on its public enlightenment campaign to schools and the translation of information on NDIC to the three major languages, Hausa, Ibo and Yoruba, in the country.

Ehimen/Williams