Liquidation: NDIC begins payment of N16bn to shareholders of 20 banks

Nigeria Deposit Insurance Corporation (NDIC) says it has commenced the payment of liquidation dividends to depositors, creditors, and shareholders of 20 banks.

In an interview with NAN on Monday, Bashir Nuhu, the director of communication and public affairs at NDIC, said an additional N16 billion was added to the liquidation dividends.

Liquidation dividends are paid to stakeholders of a company that has decided to close its operations. The sale of assets is often used to pay the shareholders and payment is not taxable.

Nuhu said the banks under liquidation are the 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.

Others include 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.

The NDIC spokesperson said the corporation has paid N45.45 billion in liquidation dividends as of July, while verification and payment for the N16 billion — which commenced on September 28 — will last for 30 days.

“Relevant stakeholders have been requested to visit any of the NDIC’s offices closer to them or go to the claims page on the Corporation’s website,” he said.

Nuhu said the liquidation dividend constitutes insured sums, adding that recovery of debts from the liquidating banks’ debtors and conversion of assets – owned by the firms — into cash, has been impressive.