NIGERIA: NDIC pays N90.13bn to Wonder Banks’ depositors

Managing Director, MD, of the Corporation, Alhaji Umaru Ibrahim

Nigerian Depositors Insurance Corporation, NDIC, has paid about N90.13 billion to depositors in 48 Deposit Money Banks, DMBs, in liquidation, as at the end of last year.

Managing Director, MD, of the Corporation, Alhaji Umaru Ibrahim, disclosed this yesterday at the ongoing Kaduna International Trade Fair.

The MD, who was represented by the Director, Research Policy and International Relations of NDIC, Dr. Jacob Afolabi, also warned that it was not possible for any form of deposit money bank to get 100 percent return on deposit within a few months, and warned on the dangers of putting money in such banks, now referred to as “wonder banks.”

He said: “It is on record that the NDIC had paid a cumulative amount of N90.13 billion to depositors of 48 Deposit Money Banks in liquidation as at December 31, 2012 as against N80.18 billion paid to depositors as at December 31st, 2011, representing an increase of about N10 billion.

“Similarly, a total sum of N2.50 billion had been paid to depositors of the 103 closed Micro Finance Banks, MFBs, as at December 31, 2012 as against N2.25 billion that was paid to the insured depositors of closed MFBs as at the end of same period in 2011.

“Also, the cumulative liquidation dividend payment to shareholders of Alpha Merchant Bank, Nigeria Merchant Bank and Pan African Bank (in-liquidation) stood at N373.04 million, N620 million and N293 million, respectively, during the period.

“This was in addition to the settlements of the depositors and creditors of the three Banks.”

According to him, the NDIC is relentless in pursuing a safe banking space for all forms of depositors and encourage Nigerians to take advantage of the new regulations protecting their investments.

On Wonder Banks, he said: “There is no way you get 100 percent return on your money in a few months, say three months in any of our Deposit Finance Institution, any kind of bank in Nigeria.

“It is not just possible, unless you are trading in cocaine, which you all know is illegal. The public should know that any person who opens such a business and so entices you, he is designing a scheme to defraud you from the onset.

“You would, most of the times, lose your capital and your expected interest. People should not patronise Wonder Banks. They are not real. We have arrested some of the owners that we could find.”

Meanwhile, the trade fair, yesterday, recorded a low turn out running for the sixth day. This was attributed to the insecurity that has bedevilled Kaduna since 2011.

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