NDIC initiates liquidation dividend payments

NDIC initiates liquidation dividend payments
NDIC initiates liquidation dividend payments

The Nigeria Deposit Insurance Corporation (NDIC) has initiated the disbursement of liquidation dividends to depositors, creditors, and shareholders of 20 banks.

In an interview with NAN, Bashir Nuhu, the Director of Communication and Public Affairs at NDIC, revealed that an additional N16 billion has been allocated to the liquidation dividends.

NDIC begins liquidation

Liquidation dividends are payments made to stakeholders when a company decides to cease its operations.

The sale of assets is used to compensate shareholders, and these payments are not subject to taxation.

Nuhu specified that the banks undergoing liquidation include Icon Merchant Bank, Liberty Bank, Progress Bank, City Express Bank, Premier Commercial Bank, All States Trust Bank, Fortune Bank, Financial Merchant Bank, and Pan African Bank.

Assurance Bank, Merchant Bank of Africa (MBA), Nigeria Merchant Bank, Commercial Trust Bank, North-South Bank, Allied Bank, Cooperative and Commerce Bank, Prime Merchant Bank, Century Bank, Rims Merchant Bank, and Amicable Bank are part of the list.

The NDIC spokesperson noted that as of July, the corporation had disbursed N45.45 billion in liquidation dividends.

The verification and payment process for the additional N16 billion, which commenced on September 28, is set to last for 30 days.

Stakeholders have been encouraged to visit the nearest NDIC office or access the claims page on the corporation’s website for further information.

Nuhu emphasized that the liquidation dividend includes insured amounts and highlighted the corporation’s effective debt recovery from the liquidating banks’ debtors and asset conversion into cash.