NDIC recovers N28bn debts, pays N1.45bn to bank customers

The Nigeria Deposit Insurance Corporation (NDIC) said it has recovered total sum of N28.48 billion from debtors of Deposit Money Banks (DMBs) in-liquidation as at December 31, 2017, even as N1.45 billion was paid to 16,324 depositors of 34 closed commercial banks during the same period.

This was contained in the Corporation’s 2017 Annual Report, where its the Managing Director/Chief Executive Officer, Umaru Ibrahim, said the recovered figure of N28.48 was higher than the N28.16 billion realised in 2016.

He explained that a total of N125.13 million was realised from debtors of closed Microfinance Banks (MFB) as at Dec. 31, 2017.

According to him, “Debt recoveries from Primary Mortgage Banks (PMBs) increased by 22.60 per cent from N195.17 million in 2016 to N239.27million in 2017.

“The sum of N21.39 billion was realised from disposal of physical assets of closed DMBs compared to N21.21 billion in 2016.

“The sum of N386.11million was also recovered from the sale of physical assets of MFBs in the period under review as against N361.45 million recovered in 2016.

“Also, the value of physical assets recovered from PMBs was N77.87 million in 2017, compared to N75.50 million as at Dec. 31, 2016,’’ Ibrahim said.

Commenting on N1.45 billion paid to 16,324 depositors of 34 closed commercial banks, Mr. Ibrahim said the figure was higher than the N0.61 million paid to 13 depositors in 2016.

He pointed out that N8.25 billion was paid to 442,661 insured depositors of DMBs in-liquidation as at Dec. 31, 2017, as against N6.80 billion paid to 426,337 depositors as at Dec. 31, 2016.

According to him, the figure represents an increase of 21.32 per cent over the amount paid in 2016.

“NDIC paid N13.24 million to 173 insured depositors of Micro Finance Banks (MFBs) in-liquidation in 2017 compared to N8.49 million paid to 110 depositors in 2016.

“To date, the sum of N2.88 billion has so far been paid as insured deposits to 81,611 depositors of 187 closed MFBs as at Dec. 31, 2017, as against N2.87 billion paid to 81, 438 depositors in 2016.

“Similarly, N15.38 million was paid as insured deposits to 170 depositors of Primary Mortgage Banks (PMBs) in 2017 compared to N7.97million paid to 75 depositors in 2016.

“On the aggregate, N68.40 million was paid to 840 depositors of 46 PMBs in-liquidation as at Dec.311, 2017, as against N53.03 million paid to 670 depositors in 2016,’’ the report quoted Ibrahim as saying.

On bank supervision, Ibrahim said NDIC collaborated with the Central Bank of Nigeria (CBN) to supervise the activities of 25 DMBs, a non-interest bank, 1,008 MFBs, and 38 PMBs in the year under review.

He said the supervision was done using the Risk-Based Supervision approach, through an on-site examination and off-site surveillance of insured institutions.