The Nigeria Deposit Insurance Corporation (NDIC), on Wednesday, offered insights why the Central Bank of Nigeria (CBN) revoked the licenses of 154 Micro Finance Banks (MFBs) and six Primary Mortgage Banks.
Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, said the revocation became necessary due to the erosion of their capital base, poor liquidity; inept management as well as insiders helping themselves with loans that they never intend to pay back.
He added that the situation was furthered worsened by the boisterous lifestyle of the Management of these banks that remained at variance with the philosophy of micro- finance banking operations.
Represented by the Controller, Nigeria Deposit Insurance Corporation (NDIC), Kano Zonal office, Alhaji Bashiru Nuhu, at the 2018 Kano International Trade Fair, he said that the NDIC has commenced the verification of all the insured depositors adding that they would soon pay the verified claims to the appropriate depositors.
He added that, “From the records obtained so far, majority of the depositors especially in the MFBs have less than N200,000.00 in their accounts , which implied that the NDIC will hopefully cover 100% of the depositors” funds in the affected MFBs”…