The Nigeria Deposit Insurance Corporation has promised to quickly pay depositors of the 179 Microfinance Banks and four Primary Mortgage Banks whose licenses were recently revoked by the Central Bank of Nigeria.
The NDIC Managing Director/Chief Executive, Mr. Bello Hassan, stated this in a statement released on Tuesday by the Director of Communication & Public Affairs Department NDIC, Bashir Alhassan Nuhu.
Recall that the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, CON, revoked the licenses of the Microfinance Banks and Primary Mortgage on Tuesday.
The CBN gazette said that the licences of the financial institutions were revoked because they “ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of six months; failed to fulfil or comply with the conditions subject to which their licences were granted; or failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.”
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Hassan, however, in the statement assured that the NDIC would promptly start the payment process of insured sums to eligible depositors of the closed banks by verifying their eligibility at the banks’ premises.
He urged these depositors to obtain necessary documentation, including proof of account ownership, valid identification, and an alternative bank account, to facilitate the verification and payment of their insured deposits.
The NDIC’s boss stressed that insured deposits are the first priority for payment to depositors when a bank’s license is revoked by the CBN, adding that the maximum insured limits for the MFB and PMB sectors are N200,000.00 and N500,000.00 per depositor per bank, respectively.
He disclosed further that the NDIC has initiated the process of selling the assets of the closed banks and recovering their debts.
“This is to enable the Corporation to pay liquidation dividends to affected depositors on a pro-rata basis, whose claims exceed the maximum insured sums of N200,000.00 for MFBs and N500,000.00 for PMBs,” he said.
He reassured the public that regulatory authorities are taking all necessary measures to maintain the stability of the banking system, adding that there is no reason for concern regarding the safety of bank deposits.
(Punch)
