NDIC Set to Liquidate 83 Microfinance Banks

The Managing Director, Nigerian Deposit Insurance Corporation, Alhaji Umaru Ibrahim reveals that the Central Bank of Nigeria had approved the liquidation of 83 licensed microfinance banks. The NDIC boss said it was discovered that some of the microfinance banks “existed only on paper, while some are used to defraud Nigerians.” He further explained that there were about 900 microfinance banks operating in the country, out of which 83 of had been listed for liquidation.

Ibrahim said the NDIC was already working towards determining the number of depositors and how much each had in the microfinance institutions in order to pay them. “Some assets of the banks will also be sold. There is no doubt that the operations of some of the microfinance banks have become epileptic,” he said.

The NDIC boss added that N105bn was provided in the 2014 budget proposals to pay off depositors of liquidated banks.“Funding gap is what we do to prepare for the rainy day. We hope and pray that the rainy day does not come, but any insurance company should prepare for the rainy day. As we speak, no bank benefited from the fund in 2013,” he said.