The Nigeria Insurance Corporation, (NDIC), has said that it has reimbursed depositors of 179 rested microfinance and four mortgage banks across the country.
The Managing Director of the NDIC, Dr Bello Hassan, stated this at the NDIC Special Day during the ongoing 45th Kaduna International Trade Fair on Thursday.
Hassan, who was represented by the NDIC’s Deputy Director of Communication, Hauwa Gambo, reiterated that the corporation’s priority was the protection of depositors’ funds of licensed banks in distress.
According to Hassan, in carrying out its statutory functions, the corporation has introduced the Single Customer View framework to expedite payment to depositors of liquidated banks.
He added that the NDIC has enhanced its collaboration with the judiciary for speedy prosecution of failed insured banks which has resulted in resolving long-drawn cases of closed banks such as Fortune and Triumph Banks liquidation.
According to Hassan, the efforts have significantly improved the debt recovery rate, which enabled the corporation to declare 100 per cent liquidation dividends to uninsured depositors of more than 20 deposit money banks.
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.
According to him, the NDIC has been compensating the clients of the 179 microfinance banks and four primary mortgage banks affected promptly.
Hassan also said that 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 to claim their funds trapped in closed banks.
