The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of paying insured deposits to customers of the 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN).
In a statement issued on Wednesday by the Head of Communication and Public Affairs Department, Hawwau Gambo, the corporation said it had been appointed the official liquidator of the failed banks following the CBN’s revocation of their licences, which took effect on 1 July.
The NDIC said its appointment was in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023.
The corporation said the affected banks have ceased to operate as licensed financial institutions and are no longer authorised to carry out banking business in Nigeria.
“The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors,” the statement said.
It added that depositors and the general public would be informed of subsequent steps in the liquidation process.
The corporation warned members of the public against conducting transactions with any of the affected banks following the revocation of their licences.
It also cautioned individuals against removing, concealing or tampering with the assets, records or properties of the failed institutions, noting that such actions could amount to a breach of the law and attract sanctions.
Background
PREMIUM TIMES earlier reported that the CBN revoked the operating licences of the 46 microfinance banks after determining that they no longer met the regulatory conditions required to continue operations.
According to the apex bank, the affected institutions were sanctioned for various regulatory breaches, including insufficient assets to meet liabilities, operating without approval, prolonged inactivity, failure to commence business within the stipulated period and failure to maintain the minimum capital required by law.
The CBN said the action forms part of its efforts to strengthen financial sector stability, protect depositors and ensure compliance with banking regulations.
The affected institutions are spread across several states, including Lagos, Kano, Abia, Kaduna, Kebbi, Ogun, Niger, Plateau, Rivers, Delta, Benue, Cross River, Ondo, Osun, Anambra, Oyo, Bayelsa, Abuja and Akwa Ibom.
Among them are Gold Microfinance Bank, Bompai Microfinance Bank, Creditville Microfinance Bank, Minjibir Microfinance Bank, Kanopoly Microfinance Bank, Now Now Digital Microfinance Bank, Safegate Microfinance Bank, Supreme Microfinance Bank, Verdant Microfinance Bank, Entrepreneur Microfinance Bank and Avantus Microfinance Bank, alongside 35 others.
The NDIC advised depositors of the affected banks to cooperate with its verification process to facilitate the payment of insured deposits and other claims arising from the liquidation exercise.
