Nigeria: NDIC to Liquidate 42 Microfinance Banks

21 December 2020

The liquidation exercise follows the revocation of their licences by the Central Bank of Nigeria

The Nigeria Deposit Insurance Corporation (NDIC) has begun to liquidate 42 microfinance banks (MFBs) across the country.

The liquidation exercise followed the revocation of their licences by the Central Bank of Nigeria (CBN), the corporation said in a statement.

The NDIC noted further that it would commence the verification of claims of stakeholders of the affected institutions on Monday.

The verification exercise would hold at the branches of the microfinance banks and would involve meeting with the depositors, creditors, and shareholders of the banks to authenticate their deposits, among other concerns.

In 2018, the CBN revoked the operating licences of about 153 MFBs and six Primary Mortgage Banks (PMBs).

List

Meanwhile, the NDIC listed the affected institutions in liquidation to include Hedgeworth MFB, Utako, Abuja; Future Growth MFB, Utako, Abuja; Bagwai MFB, Bagwai LGA, Kano; Ere City MFB, Oriade LGA, Osun State; Cafon MFB, Garki II, Abuja; Akcofed MFB, Uyo, Akwa-Ibom State; Gufax MFB, Uyo, Akwa Ibom State, Partnership MFB, Onitsha, Anambra State; ICB MFB, Ilah, Delta State; Onima MFB, Ezinihite Mbaise LGA, Imo State; and Hometrust (NATIONS) MFB, Nkwere, Imo State; and Ringim MFB, Ringim, Jigawa State.

The list also includes Bigthana MFB, Ali Akilu Road, Kaduna; Rogo MFB, Rogo LGA, Kano State; Makoda MFB, Makoda LGA, Kano; Takai MFB, Takai LGA, Kano State; Bebeji MFB, Bebeji L.G.A., Kano State; Ajingi MFB, Ajingi LGA, Kano State; Garko MFB, Garko, Kano; Kangiwa MFB, Kangiwa LGA, Kebbi State; Augie MFB, Augie LGA, Kebbi State; Mopa MFB, Mopa, Kogi State; Solid Base MFB, Ijumu LGA, Kogi State; Ultimate Benefit MFB, Lokoja, Kogi State; Ovidi MFB, Okene, Kogi State; Kirfi MFB, Kirfi LGA, Bauchi; Credit Express MFB, Kakawa Street, Lagos; King Solomon MFB, Western Avenue, Iponri, Lagos; Riggs MFB, Victoria Island, Lagos; Billionaire Blue Bricks MFB, Ajah, Lagos; Susu MFB, Yaba, Lagos; Wealthstream MFB, Apapa, Lagos; Aguda Titan MFB, Ogba, Lagos; and Sapphire MFB, Uyo, Akwa Ibom State.

Others are Metro MFB, Ogba, Ikeja, Lagos; Mountain Top MFB, Trade Fair Complex, Lagos; Unyogba MFB, Ofu LGA, Kogi State; Wapo MFB, Okene, Kogi State; Ibogun MFB, Ifo LGA, Ogun State; Korede MFB, Igbotako, Ondo State; Ahetou MFB, Ogba/Egbema/Ndoni LGA, Rivers State; and Fufore MFB, Yola, Adamawa State.

Bottlenecks

However, NDIC's Executive Director of Corporate Services, Omolola Abiola-Edewor, lamented judgments against the corporation for liabilities with respect to failed banks under liquidation

While speaking at the opening ceremony of the 2020 sensitisation seminar for judges of the Federal High Court in Abuja, Ms Abiola-Edewor said it was a major challenge confronting the deposits insurer.

She blamed the limited understanding and the widespread misconception of the Deposit Insurance System (DIS) in the country as largely responsible for the pool of unclaimed deposits that often trail bank closures.

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