The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to pay final liquidation dividends to eligible depositors, creditors and shareholders of the defunct Progress Bank of Nigeria following what it described as significant recoveries during the liquidation process.
The corporation, acting as the bank’s official liquidator, has invited eligible stakeholders to submit claims through its official website or visit designated NDIC offices to begin the verification process.
The notice, published on the corporation’s website last week, provides a one-month window from the notice date for eligible stakeholders to submit their claims.
Claims and verification process
The announcement gives former customers and other recognised stakeholders an opportunity to pursue eligible outstanding claims arising from the bank’s liquidation.
Applicants are expected to use the NDIC’s official claims process and provide the necessary supporting information to establish their eligibility. The corporation has listed contact details for designated offices, including its Lagos office at 23A Marina, Lagos Island.
Stakeholders should consult the original notice for the applicable submission requirements and should be cautious of unofficial intermediaries promising guaranteed payments.
The NDIC has not disclosed in the notice the total amount recovered from Progress Bank’s assets, the final dividend rate or the amount each eligible claimant may receive.
How liquidation dividends work
When a bank is closed and placed into liquidation, the liquidator identifies and realises available assets, verifies claims and distributes recoveries in accordance with the applicable legal framework.
Final liquidation dividends are distinct from insured-deposit reimbursements. Deposit insurance covers eligible deposits up to the applicable statutory limit, while liquidation dividends depend on the assets recovered and the claims recognised during the process.
The amount available to each stakeholder therefore depends on the relevant claim and the funds available for distribution. Filing a claim does not automatically guarantee payment of the full amount originally held or owed.
NDIC’s role in protecting depositors
The Progress Bank notice highlights the NDIC’s responsibilities beyond reimbursing insured depositors when a bank fails. The corporation also manages liquidation processes, pursues recoveries and distributes available funds to eligible stakeholders.
For former customers and investors, the announcement is an important reminder to check official notices and act within the specified period.
The final outcome will depend on the verification of claims, recoveries available for distribution and the completion of the liquidation process.
