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NDIC To Shut Down 42 Microfinance Banks

42 microfinance banks whose operating licenses had previously been invalidated by CBN are set to be closed by NDIC.

The Nigeria Deposit Insurance Corporation (NDIC) is substantiating the assertions of stakeholders of the 42 microfinance banks (MFBs) that lately had their operating licenses revoked in the latest endeavors of the Central Bank of Nigeria (CBN) to get rid of technically insolvent operators in the industry.

The NDIC will carry out the verification process between Monday and Thursday 24 December at the branches of the MFB and will comprise meeting with the depositors, creditors, and shareholders of the banks to confirm their relationships, as well as their deposits in preparatory to their liquidation by the corporation, which is statutorily authorized to do so.

Written on the NDIC Twitter handle,

“This is to inform the depositors, creditors, shareholders and the general public that the operating licenses of the under listed forty-two (42) Microfinance Banks (MFBs) have been revoked by the Central Bank of Nigeria (CBN), effective 12th November 2020.
“The Nigeria Deposit Insurance Corporation (NDIC), the Official Liquidator of the banks whose licenses 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.”

Worthy of note is the fact that the Central Bank of Nigeria (CBN) , invalidated the licenses of the banks on the 12th November 2020, and the NDIC is required to ready their formalities of passage to finally close the regulators’ books on them.

In 2018, more than 153 Micro-Finance Banks (MFBs) and six Primary Mortgage Banks (PMBs) lost their operating licenses, according to the 2018 Annual Reports of the NDIC. This recent cancellation is another in the cycle of clean up by the two banking regulators (NDIC and CBN).

Most MFBs have been struggling with high level of non-performing loans which had certainly stemmed in increased portfolio risk (PAR) and degraded their capital and liquidity to do businesses.

The 42 MFBs whose license were revoked are Hedgeworth MFB, Utako, Abuja; Future Growth MFB, Utako, Abuja; Bagwai MFB, Bagwai LGA, Kano; Ere City MFB, Oriade LGA, Osun State; Cafon MFB, Garki II, Abuja; Akcofed MFB, Uyo, Akwa-Ibom State; Gufax MFB, Uyo, Akwa Ibom State, Partnership MFB, Onitsha, Anambra State; ICB MFB, Ilah, Delta State; Onima MFB, Ezinihite Mbaise LGA, Imo State; and Hometrust (NATIONS) MFB, Nkwere, Imo State.

Some other microfinance banks are Ringim MFB, Ringim, Jigawa State; Bigthana MFB, Ali Akilu Road, Kaduna; Rogo MFB, Rogo LGA, Kano State; Makoda MFB, Makoda LGA, Kano; Takai MFB, Takai LGA, Kano State; Bebeji MFB, Bebeji L.G.A., Kano State; Ajingi MFB, Ajingi LGA, Kano State; Garko MFB, Garko, Kano; Kangiwa MFB, Kangiwa LGA, Kebbi State; Augie MFB, Augie LGA, Kebbi State; Mopa MFB, Mopa, Kogi State; Solid Base MFB, Ijumu LGA, Kogi State; Ultimate Benefit MFB, Lokoja, Kogi State; Ovidi MFB, Okene, Kogi State; Kirfi MFB, Kirfi LGA, Bauchi; Credit Express MFB, Kakawa Street, Lagos; King Solomon MFB, Western Avenue, Iponri, Lagos; Riggs MFB, Victoria Island, Lagos; Billionaire Blue Bricks MFB, Ajah, Lagos; Susu MFB, Yaba, Lagos; Wealthstream MFB, Apapa, Lagos; Aguda Titan MFB, Ogba, Lagos and Sapphire MFB, Uyo, Akwa Ibom State.

Others are Metro MFB, Ogba, Ikeja, Lagos, Mountain Top MFB, Trade Fair Complex, Lagos; Unyogba MFB, Ofu LGA, Kogi State; Wapo MFB, Okene, Kogi State; Ibogun MFB, Ifo LGA, Ogun State; Korede MFB, Igbotako, Ondo State; Ahetou MFB, Ogba/Egbema/Ndoni LGA, Rivers State and Fufore MFB, Yola, Adamawa State.

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Grace Chukwuma

Grace is a content and creative writer, social media manager, an author and the founder of Author's media.

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