NDIC Begins Process to Pay Depositors of 179 MFBs, PMBs

By Adedapo Adesanya

The Nigeria Deposit Insurance Commission (NDIC) disclosed that it has begun the process of payment of depositors in 179 microfinance banks and four primary mortgage banks across the country.

Recall that Business Post in June reported that the Central Bank of Nigeria (CBN) revoked the licences of 179 microfinance banks in the country, as well as four primary mortgage banks and three finance companies.

The CBN said that the licences of the financial institutions were revoked because they “ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of six months; failed to fulfil or comply with the conditions subject to which their licences were granted; or failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.”

Now, The NDIC called on depositors affected by the liquidation to provide alternate bank accounts in commercial banks for their payments.

This was contained in a statement on the commission’s website, where it listed all micro-finance banks and mortgage banks involved.

For those without an alternate bank account, it called on them to visit the nearest NDIC office with proof of account ownership and verifiable means of identification for their verification and payment.

It also called on those yet to be verified to visit the claims page of the commission’s website to download the online verification form.

For depositors who had more than N250,000 deposits, the commission noted it had commenced sales of assets of the banks since it does not provide insurance cover for depositors in MfBs and mortgage banks above the sum.

Its statement read, “Depositors with amounts above insured limits of Two Hundred Thousand Naira for microfinance banks and Five Hundred Thousand Naira for Primary Mortgage bank should note that the Corporation has commenced sales of assets and recovery of debts owed the closed banks to pay their balances.”

The Managing Director of the NDIC, Mr Bello Hassan, said the commission will not compromise standards as it goes commence the process of paying and the public should not be alarmed about the safety of financial institutions in the country.

“It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a deposit insurer; others being the prudential Regulation and Supervision, Failure Resolution, Deposit Insurance and Lender of Last Resort function of the Central Bank of Nigeria (CBN).

“The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums.”