The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of taking over the assets and liabilities of 46 microfinance banks whose operating licences were recently revoked by the Central Bank of Nigeria (CBN), while warning members of the public to avoid conducting any financial transactions with the affected institutions.
The warning was contained in a statement issued on Wednesday by the Head of Communication and Public Affairs at the NDIC, Hawwau Gambo. According to the Corporation, the affected microfinance banks have ceased to be licensed financial institutions and are no longer legally authorised to carry out banking operations or accept deposits from customers.
The NDIC explained that following the revocation of the banks’ licences by the CBN, it has been appointed as the official liquidator in line with the provisions of the Nigeria Deposit Insurance Corporation Act. As part of its statutory responsibilities, the Corporation has begun taking possession of the banks’ assets, verifying depositors’ records, and preparing for the orderly liquidation of the failed institutions.
The Corporation advised depositors, creditors, and other stakeholders to cooperate with its officials during the liquidation process. It also urged customers of the affected banks to remain calm, assuring them that insured deposits would be paid in accordance with existing regulations, while efforts would be made to realise the banks’ assets to settle outstanding obligations where applicable.
NDIC further cautioned the public against making deposits, loan repayments, or engaging in any form of financial dealings with the affected microfinance banks, stressing that any such transactions would be at the individual’s own risk. The Corporation reaffirmed its commitment to protecting depositors, promoting confidence in Nigeria’s banking system, and ensuring an orderly resolution of failed financial institutions.
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