Following the Central Bank of Nigeria’s (CBN) revocation of the licences of 154 Micro Finance Banks (MFBs) and six Primary Mortgage Banks (PMBs), the Nigeria Deposit Insurance Corporation (NDIC) has commenced verification of the depositors of the affected institutions and would soon begin payment of verified claims.

The Managing Director and Chief executive of the NDIC, Alhaji Umaru Ibrahim, disclosed this yesterday at the workshop for journalists in Benin City, the Edo State capital.

The NDIC boss, who was represented by the Director, Insurance and Surveillance Department at the corporation, Mohammed Umar, also revealed that with records obtained so far indicating that majority of the depositors of MFBs have less than N200,000 in their accounts, the NDIC was hopeful of covering 100 per cent of the depositors.

He said: “The CBN recently revoked the licenses of 154 MFBs and 6 PMBs due to their insolvency. The affected institutions were closed because some were found to have insufficient assets to meet their liabilities, while others had their capital to risk-weighted assets ratio and regulatory capital below the minimum prescribed by the CBN.

“Furthermore, quite a number of the banks had ceased to carry on the type of banking business for which their licenses were issued for a continuous period of more than six months while others had gone into voluntary liquidation.

“The NDIC has commenced verification of insured depositors and will soon start paying the verified claims to appropriate depositors in fulfillment of our core mandate.

“From the record obtained so far, majority of the depositors, especially in the MFBs, have less than N200,000 in their accounts, which implied that the NDIC will, hopefully, cover 100 per cent of the depositors.”

He reiterated that as part of its efforts to protect depositors against fragrant disregard of extant rules by management of financial institutions, the NDIC will continue to work closely with the CBN to ensure effective supervision of the banks so as to ensure strict adherence to rules and regulations guiding banking operations.

The NDIC boss disclosed that in order to further enhance financial system stability, the Corporation has embarked on various public awareness campaigns to explain the role and responsibilities of customers to their banks and vice versa, noting that this will enable depositors to be more vigilant in choosing financial institutions to bank with.

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