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NDIC assures depositors about safety of monies after blacklist of microfinance banks



NDIC assures depositors about safety of monies after blacklist of microfinance banks

The 179 Microfinance Banks and four Primary Mortgage Banks whose licences were recently cancelled by the Central Bank of Nigeria would get prompt payment from the Nigeria Deposit Insurance Corporation (NDIC), according to the corporation’s pledge.


This was announced by the NDIC Director of Communication & Public Affairs Department, Bashir Alhassan Nuhu, on behalf of the NDIC Managing Director/Chief Executive, Mr. Bello Hassan.

The licences of the Microfinance Banks and Primary Mortgage were cancelled on Tuesday, according to ENIGERIA, according to the governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, CON.

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The CBN gazette 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.”

Nevertheless, Hassan guaranteed in the statement that the NDIC would quickly begin the payout process of insured monies to qualified depositors of the shuttered banks by confirming their qualifications on the banks’ premises.

He recommended these depositors to acquire the required paperwork, such as evidence of account ownership, legal identification, and an additional bank account, in order to make it easier to verify and pay their covered deposits.


The NDIC’s boss stressed that insured deposits are the first priority for payment to depositors when a bank’s license is revoked by the CBN, adding that the maximum insured limits for the MFB and PMB sectors are N200,000.00 and N500,000.00 per depositor per bank, respectively.

He disclosed further that the NDIC has initiated the process of selling the assets of the closed banks and recovering their debts.

“This is to enable the Corporation to pay liquidation dividends to affected depositors on a pro-rata basis, whose claims exceed the maximum insured sums of N200,000.00 for MFBs and N500,000.00 for PMBs,” he said.

He reassured the public that regulatory authorities are taking all necessary measures to maintain the stability of the banking system, adding that there is no reason for concern regarding the safety of bank deposits.