By David Akinmola
In a significant step toward resolving one of Nigeria’s longest-standing banking failures, the Nigeria Deposit Insurance Corporation (NDIC) has announced the commencement of payment of liquidation dividends to verified creditors and shareholders of the defunct Premier Commercial Bank, more than two decades after its closure.
The NDIC made the announcement on Tuesday, stating that the payments follow a successful recovery of additional funds from the bank’s disposed assets and outstanding debts owed to the failed institution. Premier Commercial Bank was one of the banks whose licenses were revoked by the Central Bank of Nigeria (CBN) in 2000 due to insolvency and persistent regulatory breaches.
“This milestone demonstrates NDIC’s unwavering commitment to protecting stakeholders and promoting confidence in the financial system,” said Bashir Nuhu, NDIC’s Director of Communication and Public Affairs. “The payment of liquidation dividends signifies the conclusion of years of diligent debt recovery and asset disposal efforts.”
The NDIC clarified that the payment applies to eligible creditors and former shareholders who have been duly verified. Beneficiaries are required to present appropriate documentation at designated NDIC offices or partner banks for disbursement.
Stakeholders have lauded the development, noting it brings long-overdue closure and relief to many affected individuals and institutions. Mr. Tunde Balogun, a Lagos-based creditor, expressed cautious optimism. “It’s been a long time coming. Many of us had lost hope, but this action by NDIC restores a measure of trust in the system,” he said.
The NDIC reiterated its commitment to transparency and accountability in the liquidation process and encouraged all eligible claimants to come forward promptly to receive their entitlements.
Premier Commercial Bank’s liquidation case has served as a case study in financial sector reforms and the importance of effective banking regulation. NDIC officials say the payout process will continue in batches as more funds are recovered.
This development is the latest in a series of initiatives by NDIC aimed at strengthening public confidence in Nigeria’s banking system, especially in light of ongoing reforms to sanitize the financial sector.
For more information, visit www.ndic.gov.ng or contact any NDIC zonal office.
