Claims Settlements

Claim Settlement and Administration involves processing, verification and settlement of claims filed by proven depositors of failed banks. The major objective of the Corporation as an Insurer, under the Deposit Insurance Scheme when a bank fails, is to discharge its obligation to the depositors under the scheme. The guarantee that the Corporation gives under the scheme is to pay to each depositor the amount outstanding in his or her favour up to a maximum insured sum of -N-50,000.00 allowed by law when a bank is closed.

However, depositors of a failed bank with deposits in excess of the maximum insured sum are entitled to payments of Liquidation Dividend when the assets of the failed bank are realised. Creditors are considered for payment if and only if the depositors have been fully paid or provisions made for their payment and depending on availability of realised assets, while shareholders are entitled to remnant assets, if any.

The status of various payments to Depositors, Creditors and Shareholders, as at December 31, 2006, are as follows:-

1. Payment of Insured Deposit.

The sum of -N-4.15 billion had been paid as insured deposit to depositors of 43 banks in-liquidation. This represents 36.85% of the -N-9.630 billion insured deposits. To see table on Deposit Pay-out click Deposit Pay-Out

2. Payment of Liquidation Dividend to Depositors

The sum of -N-30.356 billion had been declared as liquidation dividend at rates varing between 5 kobo to 100 kobo per Naira by 33 out of the 43 banks in-liquidation. Out of the amount declared, a total sum of -N-13.312 billion had been paid out to the depositors.

This figure represents 44% of the total amount declared so far. Eleven (11) banks, namely ABC Merchant Bank Limited, Alpha Merchant Bank Plc., Amicable Bank of Nigeria Plc., ICON Ltd. (Merchant Bankers), Kapital Merchant Bank Limited, Nigeria Merchant Bank Limited, Pan African Bank Ltd., Premier Commercial Bank Ltd., Continental Merchant Bank Ltd., Rims Merchant Bank Ltd. and Merchant Bank of Africa Ltd. declared 100% dividend on their total deposits liabilities meaning that depositors' claims are paid in full or fully provided for.

You can click Deposit Pay-Out for more information on Liquidation Dividend paid.

3. Payment of Liquidation Dividend to General Creditors/Shareholders

In addition to the 100% dividend declared by the five (5) banks, a summary of Liquidation Dividend declared for Creditors and/or Shareholders can be viewed by clicking
1. Creditors
2. Shareholders.