NDIC Begins Deposit Payments Following CBN Licence Cancellations
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of paying insured depositors of 46 microfinance banks whose operating licences were withdrawn by the Central Bank of Nigeria (CBN).
Official Appointment as Liquidator
In a statement released on Wednesday, NDIC’s Head of Communication and Public Affairs, Hawwau Gambo, confirmed that the corporation has been appointed liquidator under the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023.
Liquidation Process Underway
As the designated liquidator, NDIC is taking control of the banks’ assets, overseeing their closure and managing the settlement of obligations while safeguarding depositors’ interests.
The corporation warned that the affected microfinance banks no longer possess the legal authority to offer banking services in Nigeria and urged the public to avoid any transactions with them.
Protection of Assets and Legal Warning
NDIC also cautioned against removing, concealing, retaining or tampering with the banks’ assets, records or other property, noting that such actions could breach the law and lead to legal proceedings.
Verification and Payment of Insured Deposits
The agency said it has already begun the liquidation exercise by taking possession of the failed banks and is now verifying depositors’ claims to ensure that qualifying customers receive their insured deposits.
NDIC assured depositors that updates on the liquidation process and further steps will be communicated as the exercise progresses.
CBN’s Reason for Licence Revocation
The Central Bank of Nigeria earlier cancelled the licences of the 46 microfinance banks after determining that they failed to satisfy the regulatory requirements necessary to continue operating in the nation’s banking sector.
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