By 
The Nigeria Deposit Insurance Corporation (NDIC) has announced that it continues to refund more depositors of microfinance banks (MFBs) whose licenses were recently revoked by the Central Bank of Nigeria.
As of now, the NDIC has returned N1.2 billion to approximately 34,000 depositors from 179 microfinance banks across the country. This update comes after the NDIC previously revealed it had paid N1.084 billion to 29,573 depositors affected by the closure of MFBs and Primary Mortgage Banks in October.
Bello Hassan, the Managing and Chief Executive Officer of NDIC, disclosed this information while speaking at the 2023 Sensitisation Seminar for Judges of the National Industrial Court of Nigeria and members of the Investments and Securities Tribunal in Port Harcourt, Rivers State.
The NDIC emphasized its commitment to its first mandate of deposit guarantee. Hassan stressed that the recent closure of 179 microfinance banks and four primary mortgage institutions has been handled methodically, and the process is ongoing.
Hassan also outlined the statutory functions of the NDIC, which include deposit guarantee, bank supervision, distress resolution, and bank liquidation. When a banking license is revoked, the NDIC has the authority to liquidate the insured financial institution in an orderly manner.
He acknowledged several challenges faced by the NDIC, including the execution of judgments against the corporation for bank liabilities in liquidation and the attachment of the corporation’s assets. These challenges are a part of the ongoing efforts to maintain stability in the financial system.
The seminar’s theme, ‘Strengthening depositors’ confidence in banks and other financial institutions through speedy dispensation of justice,’ highlights the importance of collaboration with the judiciary to promote financial system stability in Nigeria.
Comments