NDIC set to pay Trade Bank’s shareholders

Odidison Omankhanlen, Lagos - 15.02.2008

Investors who subscribed to the last public offer of Trade Bank Plc. may soon have a cause to smile as the Nigerian Deposit Insurance Corporation (NDIC) has concluded plans to make refunds.

In a statement made available to the Nigerian Tribune, NDIC noted that the money, which had earlier been placed on escrow account by the Central Bank of Nigeria (CBN), had been released, adding that payment of the subscribers would be made through warrants issued by Wema Registrars.

“The NDIC wishes to inform the general public, particularly the subscribers to the offer for subscription of Trade Bank Plc. (now liquidated) made in 2005, that the CBN has released the subscription money earlier held in escrow account to the corporation for refund to the subscribers as the offer was unsuccessful,” the statement said.

NDIC said the payments earlier made to some subscribers were done before the closure of the bank in 2006, adding that the corporation had not been appointed the liquidator then.

“The general public should know that the refund of subscription money earlier made to two of the applicants viz: Global Fleet Oil and Gas Limited (a company related to Mr. Jimoh Ibrahim) and Mr. Olugbenga Abayomi Orunesajo were done before the closure of the bank in January 2006 and the appointment of the NDIC as its liquidator,” it added.

It will be recalled that the payment of subscribers to the defunct Trade Bank had generated protests from various shareholder groups in the country.

They had accused the regulators of insensitivity, insisting that the subscription money should be paid with interest.