The Nigeria Deposit Insurance Corporation (NDIC) has pledged to expedite the payment process for depositors of 179 Microfinance Banks and four Primary Mortgage Banks, whose licenses were recently revoked by the Central Bank of Nigeria (CBN).
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 CBN in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.”
However, according to Mr. Bello Hassan, the Managing Director/Chief Executive of NDIC, the corporation is committed to promptly verifying the eligibility of depositors at the closed banks’ premises and initiating the payment of insured amounts.
He urged depositors to gather the necessary documentation, including proof of account ownership, valid identification, and details of an alternative bank account, to facilitate the verification and disbursement of insured deposits.
Hassan emphasized that insured deposits take precedence when a bank’s license is revoked, with the maximum insured limits set at N200,000.00 for Microfinance Banks and N500,000.00 for Primary Mortgage Banks per depositor per bank.
He also mentioned that the NDIC has begun the process of selling the closed banks’ assets and recovering outstanding debts to enable the payment of liquidation dividends to depositors whose claims exceed the maximum insured sums.
The NDIC’s assurance aims to alleviate concerns and maintain confidence in the banking system’s stability. Regulatory authorities are actively taking measures to ensure the safety of bank deposits, reassuring the public of their commitment to safeguarding the financial sector.