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Depositors of closed banks got N6.7b in 2015 – NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has said that it made a cumulative payment of N6.796 billion to 426,324 insured depositors of the closed Deposit Money Banks (DMBs) in the country as at 31st December, 2015.

According to its 2015 annual report, the above payments was against the N6.795 billion paid to 426,320 insured depositors in 2014, just as the report showed that fraud cases in the banking sector increased by 15.71 percent in 2015.

However, the corporation explained that a total of 12,279 fraud cases were reported, representing an increase of 15.71percent over the 10,612 fraud cases reported in 2014.

In terms of the actual payment  to closed Micro Finance Banks (MFBs), the NDIC said that a cumulative payment of  N2.86 billion to 81,328 depositors of the closed MFBs as at 31st December, 2015 as against N2.77 billion paid to 80,178 depositors in 2014.

Also, the NDIC made a cumulative payment of N45.05 million to 595 depositors of closed PMBs as at 31st December, 2015 as against N2.02 million paid to 30 depositors in 2014.

The report stated, “The sum of N95.77 billion was paid as liquidation dividend to depositors of DMBs in 2015 compared to N94.74 billion as at December 31, 2014. That amount included the uninsured portion of private sector depositors of 11 out of the 13 banks closed post-bank consolidation which was funded by the CBN.”

Similarly, the NDIC paid liquidation dividends to creditors of DMBs-in-liquidation in 2015 while the sum of N1, 728.40 million was declared as dividends to 1,308 creditors of the ten DMBs. Out of that amount, the NDIC paid the sum of N1, 261.73 million to the 965 creditors who filed their claims as at 31st December, 2015 as against N1, 247.77 million paid to the 889 creditors as at 31st December, 2014.

During the year under review, the NDIC also paid N2.41 billion as total liquidation dividends to 550 shareholders of 6 DMBs-in-liquidation as at 31st December, 2015 as against N2.03 billion paid to 453 shareholders of DMBs-in-liquidation as at 31st December, 2014.

Meanwhile, the cumulative amount of loans recovered over the years stood at N27.41 billion as at 31st December, 2015 compared with N26.75 billion as at 31st December, 2014.

In the same vein, the cumulative risk assets recovered from closed MFBs amounted to N125.61 million as at 31st December, 2015 compared with N124.38 million as at 31st December, 2014 while the debt recoveries from the debtors of PMBs in-liquidation amounted to N24.73 million as at 31st December, 2015.

However, the amount involved decreased significantly by N7.59 billion or 29.63per cent from N25.608 billion in 2014 to N18.021 billion in 2015.

Similarly, the actual loss suffered by the insured banks decreased by N3.02 billion or 48.79per cent  from N6.19 billion in 2014 to N3.17 billion in 2015.

The report noted that the actual loss sustained in respect of internet banking fraud was N857 million, representing 27per cent of total actual loss of the industry.

It said:  “There was an increase in the frequency of ATM/Card-Related Fraud cases from 7,181 in 2014 to 8,039 in 2015, an increase of 11.95 per cent.  However, the loss suffered by the industry due to such frauds declined significantly by 59.4per cent  from previous year figure of N1.242 billion to N0.504 billion, representing 15.9per cent  of total industry loss to frauds and forgeries.”

Out of the 12,279 fraud cases reported by the Deposit Money Banks (DMBs), 425 cases were attributed to staff. The number of fraud cases perpetrated by staff had decreased from 465 in 2014 to 425 in 2015. Similarly, losses arising there from substantially decreased by 70 percent from N3.165 billion in 2014 to N0.979 billion in 2015.

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