The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of 46 microfinance banks following the revocation of their operating licences by the Central Bank of Nigeria (CBN), while assuring affected depositors that the process of verifying and paying insured deposits is underway.
In a statement issued on Wednesday, the NDIC confirmed that it has assumed control of the assets and operations of the affected financial institutions after being appointed as the official liquidator.
The statement, signed by the Head of Communication and Public Affairs, Hawwau Gambo, warned members of the public against conducting any banking transactions with the affected banks, stressing that they no longer have the legal authority to operate.
According to the corporation, its appointment as liquidator is in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023. The agency said it would oversee the orderly winding up of the banks, safeguard available assets, and protect the interests of depositors.
The NDIC further cautioned individuals against tampering with, removing, concealing, or interfering with the assets, records, or any property belonging to the failed banks, noting that such actions constitute violations of the law and could lead to prosecution.
The corporation disclosed that it has already taken possession of the banks and commenced the liquidation process. It added that the verification of depositors’ claims is ongoing to facilitate the payment of insured deposits to eligible customers under the deposit insurance scheme.
It assured customers that additional information on the claims process and other liquidation procedures would be communicated as the exercise progresses.
The development follows the CBN’s decision to withdraw the operating licences of the 46 microfinance banks after determining that they no longer met the regulatory requirements necessary to continue operating within Nigeria’s banking industry.
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