NDIC recovers N22b debts, seeks AMCON's assistance on secured loans

THE Nigeria Deposit Insurance Corporation (NDIC) has made a cumulative debt recovery of N22.2 billion out of N179 billion for the banks in liquidation between 1994 and August 2011. It also recovered N8.3 million from the closed microfinance banks (MFBs).The Managing Director, NDIC, Ibrahim Umaru made this disclosure while briefing newsmen on the activities of the corporation in Lagos at the weekend.He lamented the pace of debt recovery, stressing that apart from appointing some debt collectors, there are discussions with Asset Management Corporation of Nigeria (AMCON) for the disposal of some secured debts of the closed banks.According to Umaru, the cumulative insured deposits paid in the 35 banks in-liquidation stood at N3.3 billion out of N5.24 billion, representing about 63 per cent, also the cumulative liquidation dividend paid to the depositors and other claimants of the affected banks was N6.16 billion out of N16.85 billion, representing about 37 per cent, adding that 12 of the banks had declared a final dividend of 100 per cent of total deposits.He disclosed that shareholders of Alpha Merchant Bank, Nigeria Merchant Bank and Pan African Bank, which were closed before 2006 had received liquidation dividends of N1.28 billion as at July this year, adding that the corporation has also paid about N20 million out of N804.35 million to depositors of Fortune Bank and N1 million out of N45.36 million for depositors of Triumph Bank, which were closed in 2006.Umaru noted the NDIC had paid an aggregate sum of N2.02 billion to about 69,000 depositors of the 103 microfinance banks, which had their operating licenses revoked in September last year, stating that it represents about 41 per cent of total insured amount of about N4.94 billion.The NDIC boss stated that the establishment of the corporation has generated the required stability and confidence through its activities, noting that the scheme is faced with many challenges, which include inability to recover liquidated banks' loans through the courts, wrong public perception and weak corporate governance on the part of operators, among others.
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