Deposit Protection

The deposit protection scheme administered by the Corporation compensates eligible depositors in the event of a failure of a licensed financial institution. At the commencement of the scheme, the guaranteed payment to depositors was limited to =N=50,000.00. But depositors who have deposits in excess of the guaranteed amount are subsequently paid liquidation dividends. Liquidation dividends are proceeds from realisation of the assets of the failed
institution that are distributed among the depositors, creditors and shareholders

In response to the changes in inflation, other macroeconomic indices and in the interrest of depositors, the Corporation submitted a bill to the National Assembly for the upward review of the guaranteed amount to =N=200,000.00.

As at September 30, 2005, the Corporation had paid guaranteed sums of about =N=3.3
billion, representing 63% of the total insured deposit claim of =N=5.2 billion to depositors of 35 banks-in-liquidation. By implementing the deposit protection scheme, the Corporation is therefore committed to promoting stability and confidence in insured financial istitutions

To view the break down of total deposit claims paid to depositors of the failed banks, click Deposit Pay-out