NDIC obtains winding -up order for 96 MFBs, PMBs in liquidation

Nigeria Deposit Insurance Corporation (NDIC) has obtained Winding up Orders for 96 out of 183 Micro Finance Banks and Primary Mortgage Banks whose licenses were revoked by the Central Bank of Nigeria (CBN) in May 2023.

Managing Director/Chief Executive Officer of NDIC, Bello Hassan who disclosed this in Lagos at 2024 Sensitization seminar organised jointly by NDIC and National Judicial Institute for Federal High Court Judges said that the Corporation received thr winding up Order in less than one year of the revocation of the MFBs and PMBs licences.

He said that the sensitization seminar, has helped to drastically reduced the challenge of liquidation-related litigations experienced in the past which makes it difficult for the Corporation to wind-up banks

whose licenses had been revoked by the Central Bank of Nigeria, and to settle depositors and other claimants promptly.

He stated that the effectiveness of the Deposit Insurance System (DIS) requires a deep understanding of the unique roles of the Corporation in the financial eco-system, adding that this sensitization seminar is therefore, one of the initiatives of the Corporation to engage the judiciary as an important arm of Government towards achieving its mandate.

Hassan said that the desire of the NDIC to continuously promote depositor confidence within the Nigerian Banking system was further demonstrated by the upwards review of the maximum deposit insurance coverage levels, as approved in April 2024. He said

“The deposit insurance coverage has been raised from N500,000 to N5,000,000 for Deposit Money Banks (DMBs) and Subscribers of Mobile Money Operators (MMOs).

Accordingly, the coverage for Payment Service Banks (PSBs) and Primary Mortgage Banks (PMBs) has been reviewed from N500,000 to N2,000,000.