Banking
34,000 Defunct Microfinance Banks’ Depositors Share N1.2bn
By Adedapo Adesanya
The Nigeria Deposit Insurance Corporation (NDIC) claims it has refunded over N1.2 billion to about 34,000 depositors of 179 microfinance banks whose licenses were revoked by the Central Bank of Nigeria (CBN).
The Managing Director of the agency, Mr Bello Hassan, revealed this while speaking during the 2023 Sensitisation Seminar for Judges of the National Industrial Court of Nigeria (NICN) and members of the Investments and Security Tribunal in Port Harcourt, Rivers State on Tuesday.
Mr Hassan, who was represented by the Executive Director of Operations at NDIC, Mr Mustapha Ibrahim, explained that the seminar was imperative for stakeholders to understand the workings and nuances of NDIC and also its operational activities.
Speaking on the theme of the seminar, Strengthening Depositors’ Confidence in Banks and Other Financial Institutions through Speedy Dispensation of Justice, Mr Hassan said the programme was anchored on the need for strategic partnering and collaboration with the judiciary for the promotion of financial System stability in Nigeria.
“Our first mandate is deposit guarantee, in other words, any deposit institution that we found, we have to guarantee payment of depositors.
“The recent closure of 179 microfinance banks and four primary mortgage institutions and we have been resolving them in an orderly manner.
“So far, we have been able to settle over 34,000 depositors of microfinance banks whose licenses were recently revoked by CBN and we paid N1.2 billion to settle these 34,000 depositors of microfinance banks and it is still an ongoing process, liquidation is not something you accomplished in a day or two,” he said.
The NDIC boss further stated that the statutory functions of the corporation include deposit guarantee, bank supervision, distress resolution, and bank liquidation, saying that upon the revocation of banking license, the NDIC has the statutory powers, to liquidate the insured financial institution whose license has been revoked.
He noted some of the challenges facing the NDIC included the, “Execution of judgement against the corporation for liabilities of banks in-liquidation, Attachment of the assets of the corporation (NDIC), including garnishee of the corporation’s corporate accounts, difficulties in the recovery of debts owed the failed banks, difficulties in bringing to book (criminal prosecution) directors, managers, and officers of failed banks that might have contributed to the collapse of their banks.”
He listed others to include a lack of specialised winding-up rules for failed financial institutions as provided for in Section 56(1) and (2) of the NDIC Act 2023; an increase in cases by ex-staff of banks under liquidation on labour law matters and issues relating to stocks and securities matters.”
According to him, despite the noted challenges, the CBN and NDIC had recorded tremendous achievements in the intervention and resolution of problem banks through the various resolution options such as bridge bank mechanism, purchase, and assumption option, among others.
“The corporation over the years has successfully liquidated many DMBs, MFBs, and PMBs whose licenses were revoked by the CBN, and their depositors as well as other claimants paid, with some of them fully settled from debts recovered and the assets realised,” he added.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
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