Depositors Of Liquidated Banks Fail To Claim N16.18B Dividends,Says NDIC

Mohammed Shosanya

Nigeria Deposit Insurance Corporation (NDIC),Thursday says 20 failed banks depositors across Nigeria are yet to claim N16.18 billion liquidation dividends accrued to them.

Its Managing Director and Chief Executive of the NDIC, Bello Hassan,who disclosed stated this at the NDIC Day at the Kano 44th International Trade Fair, held in Kano,implored the depositors of the closed banks to come forward for verification and payment of their deposits that are in excess of the guaranteed sums.

He listed the liquidated banks to include, Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North South Bank, and Prime Merchant Bank.

Others affected banks on the list are: Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Barik, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank in-liquidation.

Mr. Hassan,who was represented by Hajiya Rakiya Imam urged relevant stakeholders to visit any NDIC office or access the claims page on its website, www.ndic.gov.ng, to download, complete, and submit the verification form along with the prescribed supporting documents.

He said that submissions should be sent to the dedicated email: claimscomplaints@ndic.gov.ng.

Mrs Imam further stated that recently, following the revocation of licenses for 179 Microfinance Banks (MFBs) and 4 Primary Mortgage Banks (PMBS) by the Central Bank of Nigena (CBN), the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks.

” It’s Important to note that out of these, the NDIC has paid One Point Five Nine Five Billion Naira (N1.595 billion) to Forty-One Thousand and Thirty-Four (41,034) depositors of 129 MFBs and 3 PMBS, Payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.

“Ladies and gentlemen, it is imperative to note that in the unfortunate event of bank failure, the current insurance coverage for depositors varies across different banking institutions.

” While depositors of Deposit Money Banks (DMBs), Primary Mortgage Banks (PMBs), Non-Interes: Banks (NIBs), Payment Service Banks (PSBS), and subscribers of Mobile Money Operators (MMOs) are insured up to a maximum limit of N500,000 per depositor per bank, for depositors of Microfinance Banks (MFBs), the maximum insurance limit stands at N200,000 per depositor per bank.

“These Insured limits undergo periodic reviews by the Board of the Corporation, ensuring comprehensive coverage for the majority of depositors. Furthermore, depositors holding balances exceeding the insured sums receive regular payments of the excess in the form of liquidation dividends, that also extends to the benefit of creditors and shareholders of the respective banks,” she added.

Nigeria Needs Bigger,Stronger Banks To Achieve $1trn Economy,Says NDIC

Mohammed Shosanya

Nigeria needs bigger banks to achieve the vision of a $1 trillion economy,the Nigeria Deposit Insurance Corporation, NDIC.

Managing Director of the corporation,
Mr. Bello Hassan,who stated this in Owerri, Imo State, while addressing journalists on the sidelines of the annual workshop organised by the corporation for Business Editors and Finance Correspondents,also said the proposed recapitalization of banks by the Central Bank of Nigeria was in order.

He said while the banking industry is sound in terms of key indicators namely Capital Adequacy, Liquidity, Earnings and Quality of Assets, achieving a $1 trillion economy requires bigger banks.

He added: “I know as we speak if you look at the performance of the industry, it is very sound, looking at the key financial soundness indicators, capital adequacy, liquidity, earnings, and quality of assets.

“But, certainly, the government is trying to grow our GDP to $1 trillion, we also need bigger banks to play in that space.

“As the government is trying to implement their agenda of growing the GDP to $1 trillion we also need bigger banks to achieve that. I believe it is within that context that the CBN is recapitalising the banks, asking the banks to recapitalise, to enhance their capital.”

NDIC Clarifies Report On Liquidation Of 20 Banks

Mohammed Shosanya

The Nigeria Deposit Insurance Corporation (NDIC),has described as misleading the recent misleading news reports circulating on various social media platforms under the headline “CBN Liquidates 20 Banks – NDIC (Names).”

The NDIC gave clarification in a statement signed by Bashir Nuhu, the Director, Communication and Public Affairs.

It said that contrary to the misleading headline,NDIC clarifies that the 20 banks mentioned in those reports were among the banks that had been previously closed due to the revocation of their operating licenses by the Central Bank of Nigeria (CBN) between 1994 and 2018.

It added:”The general public should be aware that the NDIC has fulfilled its commitment by paying the guaranteed sums owed to depositors.

“Additionally, the Corporation has made cumulative payments of liquidation dividends totalling N45.45 billion as of July 2023, representing amounts exceeding the guaranteed sums to depositors of the 20 banks.

“In light of further recoveries from debtors of the liquidated banks, the Corporation has announced an additional N16.18 billion in liquidation dividends to be paid to depositors, creditors, and shareholders of the 20 banks in liquidation.

“We urge relevant stakeholders to visit any NDIC office or access the claims page on our website, www.ndic.gov.ng, to download, complete, and submit the verification form along with the prescribed supporting documents.

“Submissions should be sent to the dedicated email:claimscomplaints@ndic.gov.ng.

“The closed banks covered by this exercise include Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North South Bank, and Prime Merchant Bank. Others are Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank in-liquidation.

“It’s important to note that liquidation dividend represents the amount in excess of the insured sums paid by the NDIC to depositors of a closed bank.

“This amount is derived from recoveries made from the realization of assets of failed financial institutions and covers payments to creditors and shareholders after the full payment to depositors of the defunct bank”.

NDIC Leads In ICPC’s Ethics,Integrity Compliance Ratings

Mohammed Shosanya

The Nigeria Deposit Insurance Corporation (NDIC) has secured the top position in the Independent Corrupt Practices and Other Related Offences Commission (ICPC) 2023 Ethics and Integrity Compliance Scorecard (EICS).

Bashir Nuhu, the Director, Communication and Public Affairs, in a statement,explained thatthe development is a remarkable achievement which marks the second time that NDIC has achieved the prestigious first place, previously having been ranked first in the 2021 EICS.

The ICPC’s Ethics and Integrity Compliance Scorecard (EICS) is an annual assessment tool designed to evaluate Ministries, Departments, and Agencies (MDAs) in Nigeria for their adherence to institutional ethics and integrity requirements.

The assessment encompasses the measurement and monitoring of key performance indicators in categories such as Management Culture and Structure, Financial Management Systems, and Administrative Systems,the statement said.

In the 2023 EICS, which took place between March and July 2023 and involved 404 MDAs, the NDIC excelled with a score of 91.30%.

The EICS report emphasizes the ICPC’s commitment to mitigating abuse of office and corruption by promoting ethics and integrity benchmarks within government agencies, ultimately contributing to more effective service delivery.

According to the statement,the NDIC’s consistent first-place ranking is a testimony to the Corporation’s zero tolerance policy for corruption and benchmarking its operations with standard best practices.

It would be recalled that the Corporation in September this year earned 3 ISO Certifications having complied with the requirements following a rigorous audit by MSECB, a leading international provider of Audit and Certification services.

These achievements have been possible due to Corporation’s effective and ethical operational procedures aimed at instilling transparency and accountability. The NDIC’s Anti-Corruption and Transparency Unit (ACTU) played a pivotal role in the process, collaborating closely with the ICPC.

This collaboration included sensitizing NDIC staff, identifying and enhancing internal controls to prevent fraudulent practices, and ensuring strict compliance with established policies and procedures by the Corporation’s management

The NDIC’s outstanding performance in the 2023 ICPC Ethics and Integrity Compliance Scorecard underscores its unwavering commitment to upholding the highest ethical standards and serving as a beacon of integrity within the Public Service. The Corporation remains dedicated to ensuring the safety of deposits and contributing to the stability of the financial system.

Depositors Of Distressed Microfinance Banks Get N1.2bn Refund

Mohammed Shosanya

The Nigeria Deposit Insurance Corporation (NDIC) says it has so far made refunds of N1. 2 billion deposits to some of the 189 Microfinance Banks (MFBs) and the four Primary Mortgage Institutions (PMIs) liquidated by the Central Bank of Nigeria (CBN).

Managing Director/ Chief Executive of NDIC, Hassan Bello,disclosed this on a sideline interview at the 2023 sensitisation seminar organised by NDIC for Federal High Court Judges in Uyo, the Akwa Ibom State capital.

He said that though the Act setting up the corporation provides that payment should be made within 30 days, it has been able to effect payment to insured depositors within seven days.

He said:”So far, we have about N1. 2 billion insured deposits to the depositors in the Microfinance Banks and Primary Mortgage Institutions (PMI).

“We are still paying but why we have not completed payment is that there are some customers that we do not have records of their BVN to identify their alternate bank accounts in other banks.”

The corporation, according to Hassan has also realized N1. 6 billion to pay creditors and depositors of the 20 commercial banks liquidated, even as plans have been concluded to pay them as quickly as possible.

Imploring depositors to come forward with information that would help in the payment of the insured depositors, he expressed satisfaction that corporation was able to achieve speedy payment within seven days .

While addressing the trainees earlier, the Managing Director/ Chief Executive of NDIC, Hassan Bello noted that the judiciary plays a critical role in resolving disputes that evolve from the revocation of banking license all through liquidation and termination of liquidation activities..

He said:”Currently the maximum claim for depositors of Deposit Money Banks, (DMBs) Primary Mortgage Banks(PMBs) Payment Service Banks(PSBs) and subscribers of Mobile Money Operators (MMOs) is N500,000 per depositor, per deposit taking institution, while Micro-Finance Banks(MFB) have a maximum coverage limit of N200, 000 per depositor, per MFB”.

NDIC Boss Urges ICAN To Consider Deposit Insurance System Courses

Mohammed Shosanya

The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, has implored the Institute of Chartered Accountants of Nigeria (ICAN) to incorporate courses on the Deposit Insurance System (DIS) into its educational programs and modules.

Bashir Nuhu, the Director, Communication and Public Affairs Department,disclosed this in a statement on Thursday.

He quoted Mr. Hassan as making the call during a courtesy visit by the Governing Council Members of ICAN, led by the President of the Institute, Mr. Innocent Iweka Okwosa, to the Corporation’s Management in Abuja.

He explained that including DIS courses within ICAN’s training programs would enhance the understanding of DIS not only within the banking sector but also among professional accountants.

According to him, it as critical to bridging the knowledge gap on the mandate and achievements of DIS, its critical role in protecting depositors and its contribution to financial system stability.

He said that it would also address misconceptions of the benefits and limitations of the deposit insurance system.

He emphasized the import of public awareness in maximizing the impact and reach of the deposit insurance system throughout the general public and the financial sector as a whole.

He stated that given the novel nature of the scheme in Nigeria and globally, collaboration with ICAN and other stakeholders had become imperative to strengthen the effectiveness of the Corporation’s operations to fully implement its mandate.

Hassan congratulated Mr. Okwosa on his assumption of office as the 59th ICAN President, and encouraged him to ensure that chartered accountants uphold the Institute’s values of accuracy and integrity in all aspects of their work.

He also reassured the Institute of the Corporation’s unwavering support and partnership in furthering the practice of accounting in the country.

He also extended condolences to the Institute on the recent passing of the first chartered accountant in Nigeria, Mr. Akintola Williams who left a legacy of excellence and professionalism that has paved the way for the growth of the profession in Nigeria.

Mr. Hassan commended ICAN’s commitment to maintaining zero tolerance for professional misconduct, asserting that this stance would continue to provide confidence to the Corporation and other stakeholders in relying on the work of accountants in fulfilling their mandates.

In his remarks, Mr. Innocent Iweka Okwosa praised Mr. Hassan for his exemplary leadership and the professionalism he has instilled in the Corporation’s operations.

He noted that under Mr. Hassan’s leadership, the Corporation has made substantial contributions to ensuring the safety and stability of the Nation’s financial system, a crucial element for the growth and prosperity of the Nigerian economy.

Treepz,Octamile Unveil Insurance Program For Travelers In Africa

Mohammed Shosanya

Treepz, Africa’s leading car-sharing marketplace, is thrilled to announce its groundbreaking partnership with Octamile, Africa’s foremost insurtech startup, to introduce Treepz Care.

This innovative insurance program revolutionizes travel and mobility across the continent, offering comprehensive coverage and peace of mind to Treepz’s vibrant community of guests and hosts.

Insurance is a crucial factor in the car rental industry, influencing travellers’ decisions significantly. According to a study by the Insurance Information Institute, 62% of respondents consider insurance coverage when choosing a car rental service.

Treepz and Octamile have been diligently working on this project for several months, with the Octamile team playing a pivotal role in making Treepz Care a reality.

Treepz Care encompasses various insurance services tailored for both guests and hosts, including:guest, host protection and comprehensive insurance.

Travel and tourism are pivotal industries in countries like Nigeria, Ghana, Uganda, and Kenya. Car rental services are essential for empowering tourists and travellers to explore these diverse regions with confidence:

Kenya, renowned for its wildlife and national parks, attracted over 2 million international tourists in 2022.

Ghana’s tourism sector contributed approximately 6.8% to its GDP in 2021.

Uganda, with its rich natural attractions, continues to witness a significant rise in tourism arrivals.

Nigeria, Africa’s most populous country, has a burgeoning tourism sector with immense potential for car rental services.

Treepz stands as the only car-sharing marketplace to deploy embedded insurance for car rentals at this scale on the continent. Its dedication to building the largest car-sharing and rental marketplace in Africa is unwavering, and it remains committed to innovating solutions for the travel industry and its related sectors. Treepz Care exemplifies this commitment and its promise to prioritize its customers’ needs.

Onyeka Akumah, CEO of Treepz, expressed his enthusiasm for the partnership, stating, “We are witnessing immense growth in the travel and mobility sectors as more people seek to explore places both near and far and as they embrace flexible means of transportation in response to changing lifestyle demands.

Its goal is to build Africa’s largest car-sharing marketplace for car rentals, and at the heart of this innovation is its commitment to safety, which includes comprehensive insurance coverage for both guests and hosts. We are delighted to partner with Octamile, a company that has established itself as a leader in the digital insurance industry over the years, to introduce Treepz Care, its insurance program designed for the users of its marketplace—both guests and hosts.”

The partnership between Treepz and Octamile represents a significant milestone in the travel and mobility industry, aligning with the evolving needs and preferences of consumers. Treepz Care, aptly named to reflect its customer-centric approach, is a testament to Treepz’s unwavering commitment to safety and innovation.

Gbenro Dara, CEO of Octamile, shared his thoughts on the collaboration, stating, “Collaborating with Treepz, Africa’s largest ride-sharing marketplace, is a source of pride for us. Together, we are dedicated to providing comprehensive protection for Treepz Hosts and Guests in Nigeria, Ghana, Kenya, and Uganda. This partnership exemplifies our shared commitment to ensuring safety and peace of mind for Treepz users and furthers its mission to protect the customers of Africa’s largest digital companies.”

Depositors Of Distressed Banks Get N1.084bn

Mohammed Shosanya

The Nigeria Deposit Insurance Corporation NDIC,has paid a cumulative insured sum of N1.084 billion naira to 29,573 depositors of the closed MFBs/MPBs.

The Managing Director of the Corporation,Mr Hassan Bello,stated this during the NDIC Special Day at the ongoing 18th Abuja International Trade Fair 2023.

Bello,who reiterated the key mandate of the Corporation which is to provide deposit guarantee to depositors of insured financial institutions, bank supervision, distress resolution, and bank liquidation explained that over the years, the NDIC has grown stronger in fulfilling these responsibilities and have significantly enhanced public policy objectives of establishing a robust deposit insurance scheme in Nigeria.

He said:”This year’s theme, “Sustainable Financing and Taxation as Drivers for the New Economy,” is especially relevant given the determination of government’s efforts towards achieving sustainable growth by strengthening the financial environment to boost economic growth.”

“This falls in line with the Corporation’s contributions of ensuring the stability of the financial system by effectively complimenting the CBN in supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failures when it occurs.

“Indeed, Nigerian depositors are our priority and our foundation is built on ensuring the safety and security of their deposits. This ideal is encapsulated in our strap line; “Protecting your bank deposits!.

“This is crucial for financial inclusion because it gives Nigerians the assurance that their money is safe and accessible when needed. Furthermore, the Corporation’s activities through the supervision of banks, continuous monitoring and oversight serves as consumer protection for depositors which enhances confidence in the financial system.

This acts as an incentive for the unbanked to access financial services of licensed banks.

“Recently, following the revocation of licenses for 179 Microfinance Banks and 4 Primary Mortgage Banks by the Central Bank of Nigeria (CBN), the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks.

“It is however instructive to let you know that payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.

“Currently, the Corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks: They are Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank.

“We at the NDIC hold the strong view that “Knowledge is Power”, and we believe that an informed depositor can make better financial decisions. I urge the public to be cautious of illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes.”

“These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many. It’s important to note that these “wonder banks” are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme. Members of the public are therefore advised to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country.

NDIC Begins Payment of N16.18bn Liquidation Dividends To Depositors Of Failed Banks

Mohammed Shosanya

The Nigeria Deposit Insurance Corporation (NDIC) has announced declaration of N16.18 billion liquidation dividends to depositors, creditors and shareholders of 20 banks in-liquidation.

A statement signed by Bashir Nuhu, Director, Communication and Public Affairs,saud the Corporation has commenced verification and payment of stakeholders covered by the declarations within 30 days, starting from 28th September 2023.

The ongoing payment follows earlier payment of various sums which cumulatively amounted to N45.45bn as liquidation dividends in respect of the 20 banks as at July 2023.

The agency implored relevant stakeholders to visit any of the NDIC’s offices closer to them or go to the claims page on the Corporation’s website, www.ndic.gov.ng to download, complete and submit the verification form with prescribed supporting documents to the dedicated email for the purpose: claimscomplaints@ndic.gov.ng.

The closed banks covered by the exercise are Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North South Bank and Prime Merchant Bank. Others are Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank and Amicable Bank in-liquidation.

197m Nigerians Not Insured,Says NAICOM

Mohammed Shosanya

The National Insurance Commission (NAICOM),says 197million Nigerians have no insurance,lamenting that only three million Nigerians are insured.

Dr Usman Jankara, NAICOM’s Assistant Director, Corporate Strategy and Special Duties, disclosed this in a paper he delivered at the recently-held journalists’ seminar in Uyo, Akwa Ibom State, titled: “Insurance sector and the Nigerian Economy: Impact, Challenges and the new Frontiers”.

He stated: “Concerning the number of those insured, it is put at three million. As at last year when the figure was taken, Nigeria is assumed to be 200 million.

“From 2015 till date, when you look at Gross Premium Income of the industry, we were at N282 billion in 2015, and today it is N736 billion, representing average growth of 15 per cent”

“That is not to say the industry couldn’t have done better, but to point to the fact that things are not as bad as they were today. There has been no economy that has grown 15 per cent over a 10-year period. None of the sub-sectors have done that.

“As of 2015, assets grew from N917 billion to N2.32 trillion in 2022, an exceptional growth of about 60 per cent.Our insurance penetration rate, that is insurance to Gross Domestic Product (GDP) is 0.4 per cent, and the insurance density, that is, how many Nigerians are insured, is 1.5 per cent, he revealed.

He maintained that Life insurance grew from N86 billion in 2015 to N309.1 billion in 2022.

He added:“Also, non-life insurance grew from N198.3 billion in 2015 to N417.3 billion in 2022”.

Speaking earlier,NAICOM’s Chief Executive Officer, Mr Sunday Thomas, said efforts on to deepen insurance sensitisation to achieve huge penetration.