Depositors, creditors, and shareholders of 20 liquidated banks are to receive about N61.63 billion as paid liquidation dividends.
Liquidation dividend is the amount paid to depositors by the Nigeria Deposit Insurance Corporation (NDIC) after a bank is liquidated, if the depositor’s amount exceeds the insured amounts. Payments to creditors and shareholders are made from the proceeds after all depositors have been repaid from the assets of closed financial institutions.
A statement from the NDIC on Monday, signed by the NDIC’s Director of Communication and Public Affairs, Bashir Nuhu, revealed that about N45.45 billion had been paid as of July 2023.
The statement also disclosed that the Corporation has an additional N16.18 billion in liquidation dividends to be paid to depositors, creditors, and shareholders of the 20 banks in liquidation.
Shedding mor light, it pointed out that the 20 banks were closed due to the revocation of their operating licenses by the Central Bank of Nigeria (CBN) between 1994 and 2018.
The statement read:
“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.
“The closed banks covered by this exercise 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 statement read.