NDIC Takes Over 46 Closed Microfinance Banks
…Begins Worker Verification to Pay Depositors
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has stepped in to handle the final closure and selling off of assets of 46 microfinance banks across the country. This move follows the recent decision by the Central Bank of Nigeria (CBN) to withdraw the operating licenses of the affected financial institutions.
In an official announcement released on Wednesday, the NDIC explained that its main job now is to safely close the banks down, confirm exactly what properties and funds the banks have left, and give depositors back their hard-earned money up to the legally insured amount.
The regulatory body warned everyday Nigerians and business owners to stop all financial dealings with the shut banks immediately. It also warned people not to touch or move any property belonging to the banks, stating that doing so carries heavy legal penalties.
“The NDIC has commenced the process of immediate takeover, verification and payment of insured sums to eligible depositors,” said Hawwau Gambo, the Head of Communications and Public Affairs for the corporation.
She stated that the agency is stepping in to protect citizens using the powers given to it by the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023.
The corporation urged affected customers not to panic, promising that it will walk them through the entire recovery process and share regular updates with the public as things move forward.
“Depositors should expect notifications about claims procedures and timelines,” the NDIC statement noted. The agency also requested that anyone who has money kept in these banks, or who holds important files and documents belonging to them, should come forward as soon as possible.
The regulatory body added a strong warning for anyone thinking of breaking the law regarding the banks’ remaining assets.
“Members of the public are strongly advised against any unauthorized transaction with the closed banks or any attempt to remove, conceal, retain, or interfere with the assets, records, or properties of the banks,” the statement said.
The list of affected institutions cuts across several states. In the North, the closed banks include Janmaa MFB in Kwara, Busu MFB and Bejin-Doko MFB in Niger, Kamba MFB and Zuru MFB in Kebbi, Zafec MFB and Basawa MFB in Kaduna, Winview MFB and Casha MFB in Abuja, Mwaghavul MFB and Yeneng MFB in Plateau, and Straight Sahara MFB in Benue.
Kano State has a large number of affected banks, which include Zain MFB (formerly Dawakin Tofa), Bompai MFB, Ajwa MFB (formerly Gezawa), Now Now Digital MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Sycamore MFB, TOFA MFB, Kanopoly MFB, Bellbank MFB (formerly Tsanyawa), and Esteem MFB.
In the Southern and Western regions, the affected banks include Minji-Se Churchill MFB in Rivers, Merchant MFB and Abia SME MFB in Abia, Crystabel Microfinance Bank in Bayelsa, Creekline MFB in Delta, Frontline MFB in Anambra, and Livingspring MFB in Cross River. Stanford MFB in Uyo, Akwa Ibom State is also on the list.
For the Southwest, the shut institutions include Iwade MFB and Apple MFB in Ogun, Bestar MFB in Oyo, Ourpass MFB in Ondo, Avantus MFB in Osun, alongside Gold MFB, Chanelle MFB, Safegate MFB, Supreme MFB, Creditville MFB, MBAG MFB, Verdant MFB, and Entrepreneur MFB, all located in Lagos State.
To get more details or ask questions, the NDIC has asked depositors to visit its nearest branch offices or use its verified online and phone communication channels.
The NDIC said it will continue to publish clear guides on how to claim money and the exact dates payments will be made as the closing process continues.
