The Nigeria Deposit Insurance Corporation (NDIC) Thursday declared that it had begun payment to depositors of 154 Micro Finance Banks (MFBs) that the Central Bank of Nigeria (CBN) revoked their licences in 2018 due to insolvency.
The managing director, NDIC, Alhaji Umaru Ibrahim, said this at the Corporation’s day at the on-going 14th edition of Abuja International Trade Fair.
The event scheduled for September 21 to September 29 is with the theme “Remodeling SMEs Financing: Option and Solutions.”
Ibrahim, represented by the director of research, NDIC, Mr. Mustapha Ibrahim, said the payment was extended to depositors of six Primary Mortgage Banks (PMBs).
According to him, in the last quarter of 2018, the CBN revoked the licences of 154 MFBs and six PMBs due to their insolvency and corporate governance issues.
“Hence, the corporation successfully liquidated the failed banks and has commenced payment to the depositors of the failed banks,’’he said.
He said the corporation had investigated and mediated to address complaints from bank customers on various issues that affect them.
“As at June 30, the corporation received 35 petitions/complaints from banks customers on various issues such as ATM frauds, unauthourised funds transfer and cheques related issues. Investigations were carried out and where necessary and customers were appropriately reprieved.”
He said NDIC would continue to work with CBN to ensure effective supervision of banks and the adherence to prudential guidelines and code of corporate governance for banks.
Ibrahim said this was to ensure their safety and the overall stability of the Nigerian financial system, but urged small savers to avoid depositing their money with thrift collectors.
“It is imperative to point out the need for traders, artisans, farmers and other small savers to ensure that their savings are deposited in banks or other licensed deposit-taking financial institutions nearest to them.
“This is to avoid losses that could result from incidents of burglaries and other forms of crimes.”
Earlier, the president, Abuja Chamber of Commerce and Industry (ACCI), Mr. Adetokunbo Kayode, identified deposit insurance as one of the important pre-requisites for building confidence of the depositors in the formal banking system.
Kayode, who was represented by the director-general, ACCI, Mrs. Tonia Sholeye, said governments in developing and advanced economies grant formal deposit insurance with the aim of reducing the risk of systemic failure of banks.
