The Nigeria Deposit Insurance Corporation (NDIC) has taken over the assets and operations of 46 microfinance banks after the Central Bank of Nigeria (CBN) revoked their operating licences.
The corporation has warned Nigerians against carrying out any banking transactions with the affected institutions, stressing that they are no longer permitted to operate.
This is contained in a statement issued on Wednesday by the NDIC’s Head of Communication and Public Affairs, Hawwau Gambo, following the CBN’s announcement of the licence cancellations.
The NDIC said it has been officially appointed liquidator for the failed banks under the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023. As liquidator, the corporation will oversee the shutdown of the banks and manage the process of winding down their affairs while safeguarding depositors’ interests.
According to the NDIC, the affected banks have completely lost their legal right to offer banking services in Nigeria. It urged customers and members of the public to avoid any business dealings with them.
The corporation also cautioned against removing, concealing, or tampering with the banks’ assets, records, or other property, warning that doing so could amount to a legal violation with consequences.
NDIC disclosed that it has already begun the liquidation process by taking possession of the failed banks, and that verification of depositors’ claims is ongoing ahead of payouts to customers covered under the deposit insurance scheme.
It assured depositors that updates on the liquidation process would be communicated as the exercise progresses.
The CBN had revoked the licences of the 46 microfinance banks after determining that they failed to meet the regulatory requirements needed to continue operating in Nigeria’s banking sector.
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