NDIC Commences Payment Verification For 42 Liquidated MFBs’ Depositors
- Woos Federal High Court judges on DIS
BY CHINYERE OBIORA, LAGOS – Following Central Bank of Nigeria (CBN)’s recent revocation of 42 Micro-Finance Banks (MFBs) licences, the Nigeria Deposit Insurance Corporation (NDIC) is set to put smiles on the faces of depositors in the affected banks.
According to the Corporation, the process of paying insured depositors of the liquidated banks across the country will effectively flag-off on Monday, December 21, 2020.
A statement by the Director, Claims Resolution Department of the Corporation, Mrs Nurat Ajigbewu, in Abuja on Sunday, said the exercise involves verification of depositors’ claims in line with existing standard procedures in the nation’s banking industry.
It listed the affected banks that have been shut alongside their branches as: SIN Bank, Future Growth Bank, Ere City MFB, CAFON MFB, AKCOFED MFB, ICB MFB, Partnership MFB, Onima MFB, Hometrust (Nations) MFB, Ringim MFB, Bigthana MFB, Rogo MFB and Makoda MFB.
Other MFBs whose licences were revoked include: Hedgeworth MFB, Bagwai MFB, Gufax MFB, Takai MFB, Babeji MFB, Ajingi MFB, Garko MFB, Kangiwa MFB, Augie MFB, Mopa MFB, Solidbade MFB, Ultimate Benefit MFB, OVidi MFB, Kirfi MFB, Credit Express MFB, King Solomon MFB, Riggs MFB, and Billionaire Blue Bricks MFB
Also on the list are: Metro MFB, Mountin Top MFB, Susu MFB, Whaelthstream MFB, Aguda Titun MFB, Sapphire MFB, Unyogba MFB, Wapi MFB, Ibogun MFB, Korede MFB, Ahetou MFB, and Fofure MFB among others.
The Corporation said in the statement issued to the customers of the affected banks said; “This is to inform the depositors, creditors, shareholders and the general public that the operating licences of the under listed 42 Microfinance Banks (MFBs) have been revoked by the Central Bank of Nigeria (CBN) effective from 12th of November, 2020.
“The Nigeria Deposit Insurance Corporation (NDIC), the official Liquidator of the banks whose licences were recently revoked, is in the process of closing the listed banks and pay their insured Depositors.
“We therefore request that all depositors of these banks should visit the closed banks’ addresses and meet NDIC officials for the verification of their claims, commencing from Monday, 21st December, 2020 till Thursday, 24th December, 2020.”
In another development, the NDIC blamed limited understanding and widespread misconception of the Deposit Insurance System (DIS) in Nigeria as largely responsible for the pool of unclaimed deposits following bank closures.
The Commission’s Executive Director, Corporate Services, Mrs Omolola Abiola-Edewor, said the situation was a global challenge to DIS, adding that the phenomenon informs NDIC’s concerted efforts to continuously collaborate with the Judiciary and other stakeholders in promoting sound knowledge and understanding of DIS over the years.
Delivering a keynote address at the opening ceremony of the 2020 Sensitization Seminar for Federal High Court Judges in Abuja with the theme: “The Challenges to Deposit Insurance Law and Practice in Nigeria”, Abiola-Edewor said NDIC would continue to jealously guard its relationship with the nation’s judiciary.
She said the current economic situation occasioned by the COVID-19 pandemic has further underscored the need to strengthen the collaboration towards enhancing the stability of the financial system.
Abiola-Edewor stated that judgments against NDIC for liabilities of failed banks under liquidation remain serious challenge confronting the corporation, noting that effective resolution of legal issues affecting DIS’ administration is critical to the enhancement of safety and soundness of the banking system.
She also said NDIC is looking forward to draw from the rich knowledge and experience of the Federal High Court judges on ways of addressing these challenges.
