NDIC pays N45.45bn dividends, to pay additional N16.18bn to stakeholders of 20 liquidated banks

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  • Investors lose N132.61bn as NGX ASI sheds 0.35%

BY FESTUS OKOROMADU, ABUJA

The Nigeria Deposit Insurance Corporation says it has made cumulative payments of liquidation dividends totaling N45.45 billion as of July 2023, to depositors of the 20 banks in liquidation and has announced plans to pay an additional N16.18 billion.

The Corporation disclosed this in a statement to clarify a recent news report which it described as misleading on the position of the liquidated banks.

The statement signed by NDIC’s Director, Communications and Public Affairs, Bashir Nuhu, said the 20 banks mentioned in reports circulating in the social media and some news platforms were among those previously closed.

“We would like to clarify 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,” Nuhu said.

He advised the general public to be wary of mischievous reports stressing that the NDIC has fulfilled its obligations to stakeholders as required by laws.

“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 totaling 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,” he added.

The Corporation 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, adding that submissions should be sent to the dedicated email: claimscomplaints@ndic.gov.ng.

The NDIC listed the closed banks covered by this exercise 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 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.

The liquidation dividends represent 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.

Equities’ investors lose N132.61bn as NGX’s ASI shed 0.35%

The Nigerian equities market opened the week on a bearish tilt as the benchmark Index of the Nigerian Exchange Limited All-Share Index shed 0.35 percent to settle at 70,608.02 points.

Gains in telecommunications heavyweight, MTNN, ZENITHBANK, and GTCO which advance by 2.56 percent, 1.36 percent and 0.84 percent respectively were offset by losses in BUACEMENT, ACCESSCORP, and INTBREW declining by 7.76 percent, 0.29 percent and 1.11 percent each.

As a result, the NGX ASI’s year-to-date return fell to 37.77 percent, while the market capitalization shed ₦132.61 billion to close at ₦38.80 trillion.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 39.35 percent.

A total of 474.39 million shares valued at ₦7.75 billion were exchanged in 7,630 deals.

FIDELITYBK led the volume chart with 94.05 million units traded, while MTNN led the value chart in deals worth ₦2.23 billion.

At the close of trading, the market recorded 26 gainers, 18 losers, and 77 unchanged. ALEX topped the gainers list, while JAP GOLD topped the losers’ table.