NDIC Commences Liquidation Processes for 42 MFBs

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James Emejo in Abuja

The Nigeria Deposit Insurance Corporation (NDIC) yesterday said it had commenced a process to liquidate 42 microfinance banks (MFBs) following the recent revocation of their licences by the Central Bank of Nigeria (CBN).

Accordingly, the corporation stated that it would today begin to verify the claims of stakeholders of the affected institutions.

The NDIC, in a public notice said the verification exercise would hold at the branches of the MFB and would involve meeting with the depositors, creditors, and shareholders of the banks to ascertain their relationships as well as their deposits in preparatory to their liquidation.

The CBN had in 2018 revoked the operating licences of about 153 MFBs and six Primary Mortgage Banks (PMBs).

Meanwhile, NDIC Executive Director (Corporate Services), Hon. Omolola Abiola-Edewor, has identified judgments against the corporation for liabilities of failed banks under liquidation as another challenge confronting the deposit insurer.

Speaking at the opening ceremony of the 2020 sensitisation seminar for judges of the Federal High Court in Abuja with the theme: ‘The Challenges to Deposit Insurance Law and Practice in Nigeria’, Edewor said that the effective resolution of legal issues affecting the administration of the deposit insurance system was critical to the enhancement of safety and soundness of the banking system.

She also blamed the limited understanding and the widespread misconception of the Deposit Insurance System (DIS) in the country as largely responsible for the pool of unclaimed deposits following bank closures.

However, the NDIC had further listed the affected institutions in liquidation to include 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.

Other 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.