154 failed banks: NDIC commences payment to depositors

The Nigeria Deposit Insurance Corporation(NDIC) has commenced the payment of money deposited in the 154 failed Micro Finance Banks (MFBs) to the customers of the banks. This is according to the corporation’s Managing Director (MD), Umaru Ibrahim. 

Recall that last year (2018), the Central Bank of Nigeria (CBN) revoked the licences of the banks due to insolvency. 

Speaking at the Corporation’s day at the ongoing 14th edition of Abuja International Trade Fair, Ibrahim said the payment was also extended to depositors of six Primary Mortgage Banks (PMDs). 

Ibrahim, who was represented at the event by Mustapha Ibrahim, was quoted to have said amongst other reasons for the CBN to revoke the banks’ licenses were corporate governance issues.  

“Hence, the corporation successfully liquidated the failed banks and has commenced payment to the depositors of the failed banks,’’ Ibrahim added. 

Ibrahim further hinted that the NDIC had investigated and mediated to address complaints from bank customers on various issues that affect them. 

He added, “As at June 30, the corporation received 35 petitions/complaints from banks customers on various issues such as ATM frauds, unauthorised funds transfer and cheques-related issues. Investigations were carried out and where necessary, customers were appropriately reprieved.” 

What you should know: According to the apex bank, the 154 affected institutions were microfinance banks; 6 were primary mortgage banks while the remaining 22 were finance companies. The CBN also said 62 of the microfinance banks had already closed shop; 74 became insolvent; 12 were terminally distressed; while 6 voluntarily liquidated. 

The primary mortgage banks include Accord Savings and Loans Limited in Lagos that failed to recapitalise and Ahocol Savings and Loans Limited in Anambra (state government-owned) that closed down. 

The other mortgage banks are Trans Atlantic Savings and Loans Limited in Bayelsa (state government-owned) that became insolvent; Royal Savings and Loans Limited in Delta State that also closed shop; Amex Savings and Loans Limited in Lagos that failed to recapitalise and Supreme Savings and Loans Limited also in Lagos that closed shop.

8 finance companies, however, voluntary liquidated; 13 failed to recapitalise; while one became insolvent.  

Note that the affected institutions were from different states of the federation. 



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