In a significant step towards ensuring financial stability and the protection of depositors, the Nigeria Deposit Insurance Corporation (NDIC) has announced that it will pay a 100% liquidation dividend to the depositors of 20 banks that have previously failed. The move, which marks a milestone in the NDIC’s efforts to safeguard the interests of banking customers, was disclosed at the 36th Enugu International Trade Fair by the Corporation’s South-East Zonal Coordinator, Pamela Robert.
This latest initiative by the NDIC is expected to provide relief to thousands of depositors who had been affected by the collapse of their banks, guaranteeing them the full repayment of their deposits. The first tranche of these liquidation dividends will begin in April 2025, bringing hope to those who have long awaited the resolution of their claims.
The NDIC, a key player in Nigeria’s financial ecosystem, has long been tasked with providing deposit insurance, supervising financial institutions, and managing the liquidation process of failed banks. With over three decades of service, the Corporation has built a strong reputation for helping depositors and fortifying the nation’s banking system. It is responsible for liquidating failed banks, reimbursing insured depositors, recovering debts, and managing the disposal of assets to ensure that claimants receive their rightful payments.
During her address at the Trade Fair, Robert emphasized that the NDIC’s work is integral to the financial stability of the country, and the agency has been dedicated to promoting financial inclusion and boosting public confidence in the banking system. She pointed out that the NDIC collaborates closely with the Central Bank of Nigeria (CBN) to ensure compliance with banking regulations and the overall stability of the sector.
The announcement of the 100% liquidation dividend is seen as a major victory for depositors, as it marks the successful reimbursement of their funds following the closure of 20 banks. This initiative reflects the NDIC’s capacity to effectively manage the liquidation process, ensuring that depositors are compensated for their losses.
Robert clarified that the NDIC has already completed the liquidation process for several failed banks, including the controversial revocation of Heritage Bank’s license by the CBN in June 2024. Following the revocation, the NDIC swiftly initiated the liquidation process, paying insured deposits—up to ₦5 million per depositor—within just four days. Most depositors have already received their funds through alternative bank accounts linked to their Bank Verification Numbers (BVNs), with a small number of people still pending payments due to issues such as KYC discrepancies or lack of BVNs.
To help facilitate the process for affected depositors, Robert encouraged those who are yet to receive their payments to reach out to the NDIC. Affected individuals can visit the NDIC’s website, send an email, or contact any of the zonal offices with the relevant documentation to speed up the resolution of their claims. The Corporation also urged depositors to ensure that their BVN details are up-to-date to avoid delays in receiving their payments.
For those with balances above the ₦5 million insured limit, the NDIC explained that these funds, known as uninsured deposits, would be reimbursed as liquidation dividends. However, these payments will depend on the recovery of assets and loans from the failed banks. As NDIC recovers more assets, further payments will be made in additional tranches.
Robert highlighted the NDIC’s ongoing efforts in the liquidation of Heritage Bank, noting that significant progress has been made in asset sales and debt recovery. The Corporation has assured depositors that their funds will be fully reimbursed as more assets are recovered in the coming months. This phased approach to liquidation ensures that depositors will continue to receive their payments as the Corporation recovers more funds from the failed institutions.
The NDIC’s success in paying 100% liquidation dividends is a clear indication of its commitment to protecting the interests of Nigerian depositors. The Corporation’s ability to recover debts and liquidate assets efficiently has been critical in ensuring that depositors are made whole in the aftermath of a bank’s collapse.
The NDIC’s role in ensuring financial stability and protecting depositors has been increasingly important in recent years, especially as economic challenges and banking sector instability have led to a series of bank failures. With the latest announcement, the NDIC is reaffirming its position as a key player in Nigeria’s financial system.
For the thousands of depositors affected by the collapse of these banks, the payment of 100% liquidation dividends is a welcome development. It provides not only financial relief but also peace of mind, knowing that their hard-earned savings will be reimbursed. As more banks face challenges, the NDIC’s continued efforts to secure the financial wellbeing of Nigerian citizens will be vital in maintaining public trust in the banking system.
As the NDIC prepares to pay out the first tranche of liquidation dividends in April 2025, it is expected that the Corporation will continue to play a pivotal role in resolving the issues facing the Nigerian banking system. With the implementation of improved systems and closer cooperation with the CBN, the NDIC aims to maintain a stable financial environment that ensures the protection of depositors and the long-term health of the banking sector.
The Corporation’s commitment to transparency, efficiency, and the protection of depositors’ rights is critical as it tackles the challenges of bank failures, ensuring that no depositor is left behind. Through the payment of liquidation dividends, the NDIC is making significant strides toward fulfilling its mandate and contributing to Nigeria’s financial stability.
