The Nigeria Deposit Insurance Corporation has invited eligible depositors, creditors and shareholders of the defunct Progress Bank of Nigeria to submit claims ahead of the planned payment of final liquidation dividends.
The corporation, which is acting as the official liquidator of Progress Bank, said the planned distribution follows recoveries made during the liquidation process.
In its notice published on October 19, the NDIC urged eligible stakeholders to file their claims through the claims section of its official website or visit designated offices for assistance. The corporation gave claimants one month from the notice’s publication date to submit their claims.
NDIC opens claims process for eligible stakeholders
The invitation is directed at people and entities with recognised claims against the failed bank. These include eligible depositors, creditors and shareholders who may be entitled to receive a share of funds recovered during the liquidation process.
The NDIC listed its Lagos office at 23A Marina, Lagos Island, among the locations where claimants can seek assistance. It also provided details for other offices, including those in Enugu and Benin City.
Claimants should use the corporation’s official channels to confirm the documentation required and determine how their claims should be filed. The deadline is important because stakeholders who delay may encounter difficulties completing the process within the specified period.
The notice does not mean that every former customer or shareholder will automatically receive a payment. Claims must be assessed against the applicable liquidation records and procedures.
What liquidation dividends mean
When a bank is placed in liquidation, the process involves identifying and recovering its assets, establishing valid claims and distributing available funds in accordance with the applicable legal framework.
Recoveries can come from outstanding loans, the sale of assets and the settlement of other obligations owed to the failed institution.
A final liquidation dividend is a distribution made from funds available after the liquidator has assessed recoveries and outstanding claims. The amount available for distribution may be affected by the value of assets recovered, expenses and the priority given to different categories of claims.
The NDIC’s announcement indicates that recoveries have reached a stage at which it intends to make a final distribution to eligible stakeholders. The notice does not specify the total amount to be distributed or the payment each claimant will receive.
Deposit protection and confidence in the banking system
The NDIC plays an important role in Nigeria’s financial safety net through deposit insurance, bank resolution and the liquidation of failed institutions.
Its work is particularly significant for public confidence because bank failures can leave customers uncertain about the status of their funds and the procedures available to them.
The corporation’s liquidation responsibilities are distinct from the payment of insured deposits in a newly failed bank. A liquidation dividend concerns distributions from recoveries made during the winding-up process and is subject to the terms of the relevant claim.
Claimants urged to use official channels
Former Progress Bank stakeholders should verify the notice, follow the stated filing procedure and retain evidence of any claim submitted.
They should also be wary of individuals who promise guaranteed payments in exchange for unofficial fees or who request confidential banking information. The safest route is to contact the NDIC directly through its published website and office details.
The corporation’s notice is a specific opportunity for eligible stakeholders to pursue outstanding claims. Whether individual applicants qualify and how much they may receive will depend on the claims assessment and the final distribution arrangements.
