Wednesday, October 20, 2021

CBN shuts 42 microfinance banks, gives depositors deadline to verify claims

NDIC has been instructed to liquidate assets of the ‘non performing’ banks.

• December 21, 2020
CBN Governor, Godwin Emefiele. [CREDIT: Bloomberg]
CBN Governor, Godwin Emefiele [CREDIT: Bloomberg]

Nigeria’s central bank has withdrawn the operating licences of at least 42 microfinance banks, two years after it closed its books on 153 MFBs and six primary mortgage banks (PMBs).

In a recent swoop by the Nigerian government banker on non-performing banks, the NDIC – a national insurance corporation has been directed to commence the process of liquidating the affected MFBs.

The NDIC in a statement issued last Friday, asked all depositors, creditors and shareholders of the closed banks to enrol for verification of their claims between Monday, December 21 and Thursday, December 24, 2020.

“This is to inform the depositors, creditors, shareholders and the general public that the operating licenses of the under listed forty-two (42) Microfinance Banks (MFBs) have been revoked by the Central Bank of Nigeria (CBN), effective 12th November 2020,” the statement read.

“The Nigeria Deposit Insurance Corporation (NDIC), the Official Liquidator of the banks whose licenses were recently revoked, is in the process of closing the listed banks and paying their insured Depositors,” the NDIC stated.

It added: “We, therefore, request that all depositors of these banks should visit the closed banks’ addresses and meet NDIC officials for the verification of their claims, commencing from Monday, 21st December 2020 till Thursday, 24th December 2020.”

Prominent among the 42 affected microfinance banks are Hedgeworth MFB, Future Growth MFB and Cafon MFB – all in Abuja.

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