The Nigerian Deposit Insurance Corporation (NDIC), a government-backed agency that aims to protect customers that deposit money in financial institutions, has reportedly disbursed NGN 2 billion (USD 12.6 million) to 71,000 depositors of 103 Nigerian microfinance banks (MFBs) that closed in 2010. The payments were made through eight agent banks: First Bank, Access Bank, Unity Bank, Mainstreet Bank, Union Bank, Wema Bank, United Bank of Africa (UBA) and Zenith Bank.
NDIC managing director Alhaji Umaru Ibrahim reportedly stated that NDIC has also paid NGN 3.3 billion (USD 20.9 million) against NGN 5.2 billion (USD 32.9 million) insured deposits from 35 deposit money banks that were liquidated since 2004.
NDIC has also reportedly increased the deposit insurance coverage level from NGN 200,000 (USD 1,270) to NGN 500,000 (USD 3,170) for deposit money banks and from NGN 100,000 (USD 634) to NGN 200,000 (USD 1,270) for MFBs. According to a statement attributed to Mr Ibrahim, the new coverage limit was used to settle deposits of the 103 closed MFBs.
Among the strategies implemented to increase public awareness of NDIC activities and mandates, NDIC has launched a website and established a toll-free 24-hour help desk.
By Charlotte Newman, Research Associate
Sources and Additional Resources:
Business Day: “NDIC Pays 71,000 Depositors of Closed MFBs,” http://www.businessdayonline.com/NG/index.php/microfinance/35288-ndic-pays-71000-depositors-of-closed-mfbs
Nigeria Deposit Insurance Corporation, http://www.ndic.org.ng/
MicroCapital.org story, March 7, 2012, “MICROCAPITAL BRIEF: Nigerian Microfinance Bank Transactions With Traditional Banks Excluded from Cash Limit Policy,” https://www.microcapital.org/microcapital-brief-nigerian-microfinance-bank-transactions-with-traditional-banks-excluded-from-cash-limit-policy/
MicroCapital.org story, March 1, 2012, “MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Appoints Debt Recovery Agents to Seek Repayments Owed Microfinance Institutions in Liquidation,” https://www.microcapital.org/microcapital-brief-nigeria-deposit-insurance-corporation-ndic-appoints-debt-recovery-agents-to-seek-repayments-owed-microfinance-institutions-in-liquidation/
MicroCapital.org story, October , 2012, “MICROCAPITAL BRIEF: Central Bank of Nigeria Revokes Licenses of 224 Microfinance Banks,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-revokes-licenses-of-224-microfinance-banks/
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