NDIC To Liquidate 179 Microfinance Banks Revoked by CBN

179 microfinance banks whose licenses had been revoked by the Central Financial institution of Nigeria, CBN, shall be liquidated by the Nigeria Deposit Insurance coverage Company, NDIC.

Recall that the apex financial institution had early this week revoked the licences of 179 microfinance banks within the nation, in addition to 4 major mortgage banks and three finance corporations.

The Coordinator of NDIC Kano zonal workplace, Shehu Usman, made the disclosure at a lecture organised by the company to commemorate the 2023 Monetary Literacy Day held at Rumfa School in Kano on Thursday.

He stated the apex financial institution had since forwarded the checklist of the affected banks and people of the 4 major mortgage banks and three finance corporations to the company for last liquidation.

He famous that the accountability of the company is to make sure the safety and assure of the monetary disposition of Nigerians including that’s the reason they’re cooperating with the CBN to realize such missions.

He used the event to warn financial institution prospects towards depositing or lodging their cash in any financial institution that doesn’t have the sticker of the company.

“I need to use this chance to warn financial institution prospects to desist from protecting their cash in any financial institution however solely these establishments which are insured”.

On Monetary Literacy Day for the scholars, the NDIC zonal coordinator stated it has turn out to be obligatory for the scholars to concentrate on monetary transactions and the way to go about them.

Shehu defined that by means of the literacy day, they’re instructing college students the way to function accounts, together with enterprise transaction accounts, in order that they know the way to make investments their cash or reserve it.

In her presentation on the event, an official within the NDIC Kano zonal workplace, Ms. Khadija Masanawa, stated the rationale behind the institution of the NDIC was to keep away from the repeat of the bitter experiences of financial institution failures within the late Forties and early Fifties, when there was no formal mechanism for safeguarding depositors.

She defined that the company had supplied deposit ensures to a complete of 984 CBN-licensed banks throughout the nation.

In his remarks, the Principal of the School, Safiyanu Na’abba, counseled the company for organising the programme, which he stated had enlightened each employees and college students of the college on the operations of the company.