The Nigeria Deposit Insurance Commission (NDIC) has initiated the crucial process of disbursing payments to depositors of 179 microfinance banks and four primary mortgage banks, spanning various regions of the nation.

Serving as the government’s key agency, the NDIC plays a vital role in securing deposits by ensuring the guarantee of payment up to the stipulated maximum limit in accordance with its legislative framework. This safeguard comes into play should an insured financial institution encounter a situation of failure.

In an official statement released on the commission’s website, depositors impacted by the liquidation proceedings have been urged to furnish alternate bank account details with commercial banks to facilitate seamless disbursement of their funds.

For depositors who do not possess an alternative bank account, the NDIC has delineated a course of action to ensure the seamless continuation of the payment process.

“Depositors without alternate accounts in commercial banks and those yet to be verified should therefore visit the nearest NDIC office with proof of account ownership and verifiable means of identification for their verification and payment.”

It also called on those yet to be verified to visit the claims page of the commission’s website to download the online verification form.

For depositors who had more than N250,000 deposits, the commission noted it has commenced sales of assets of the banks since it does not provide insurance cover for depositors in MfBs and mortgage banks above N250,000.

Its statement read, “Depositors with amounts above insured limits of Two Hundred Thousand Naira for microfinance banks and Five Hundred Thousand Naira for Primary Mortgage banks should note that the Corporation has commenced sales of assets and recovery of debts owed the closed banks to pay their balances.”

Speaking on the issue during a capacity building workshop organised by senior management of the corporation, the Managing Director, Bello Hassan said the commission will not compromise standards as it goes commence the process of paying and the public should not be alarmed about the safety of financial institutions (banks).

He said, “It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a deposit insurer; others being the prudential Regulation and Supervision, Failure Resolution, Deposit Insurance and Lender of Last Resort function of the Central Bank of Nigeria (CBN).

“The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums.”

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