42 microfinance banks lose licences

The Central Bank of Nigeria (CBN) has withdrawn the operating licenses of 42 microfinance banks (MfBs). The affected banks have been shut down.

The Nigeria Deposit Insurance Corporation (NDIC) has stepped in to wind down the banks.

In a statement, the NDIC said it would promptly commence the verification of claims of depositors from today.

The affected banks are Hedgeworth MFB, Utako, Abuja;    Future Growth MFB, Utako, Abuja;  Bagwai MFB, Bagwai LGA, Kano; Ere City MFB, Oriade LGA, Osun State; Cafon MFB, Garki II, Abuja; Akcofed MFB, Uyo, Akwa-Ibom State;  Gufax MFB,  Uyo, Akwa Ibom State, Partnership  MFB, Onitsha, Anambra State;  ICB MFB, Ilah, Delta State;  Onima MFB, Ezinihite Mbaise LGA, Imo State; and Hometrust (NATIONS) MFB, Nkwere, Imo State.

Others are Ringim MFB, Ringim,  Jigawa State; Bigthana MFB, Ali Akilu Road,  Kaduna;  Rogo MFB, Rogo LGA, Kano State;  Makoda MFB, Makoda LGA, Kano; Takai MFB, Takai LGA, Kano State; Bebeji MFB, Bebeji  L.G.A., Kano State;  Ajingi MFB, Ajingi LGA, Kano State; Garko MFB,  Garko, Kano; Kangiwa MFB, Kangiwa LGA, Kebbi State; Augie MFB, Augie LGA, Kebbi State;  Mopa  MFB, and Mopa, Kogi State.


Others are Solid Base MFB, Ijumu  LGA, Kogi State; Ultimate Benefit MFB, Lokoja, Kogi State; Ovidi MFB,  Okene, Kogi State; Kirfi MFB, Kirfi LGA, Bauchi; Credit  Express MFB, Kakawa Street, Lagos; King Solomon MFB, Western Avenue, Iponri, Lagos; Riggs MFB, Victoria Island, Lagos; Billionaire Blue Bricks MFB, Ajah, Lagos; Susu MFB, Yaba, Lagos; Wealthstream MFB, Apapa,  Lagos; Aguda Titun MFB, Ogba, Lagos and Sapphire MFB, Uyo, Akwa Ibom State.

Also on the list are Metro  MFB, Ogba, Ikeja, Lagos, Mountain Top MFB, Trade Fair Complex, Lagos; Unyogba MFB, Ofu LGA, Kogi State; Wapo MFB, Okene, Kogi State; Ibogun MFB, Ifo LGA, Ogun State;  Korede MFB, Igbotako, Ondo State; Ahetou  MFB, Ogba/Egbema/Ndoni LGA, Rivers State and Fufore MFB, Yola, Adamawa State.

According to NDIC, the operating licences  were revoked by the CBN effective from November 12, 2020.

The NDIC stated: “As the official liquidator of the banks whose licences were recently revoked, it is the process of closing the banks and paying their insured depositors.

“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.”

For further clarification or any assistance, eligible depositors have been requested to contact the representatives of the director, Claims Resolution Department of the NDIC in any of the centres or zonal offices in Abuja, Lagos, Enugu, Benin, Kano, Ilorin, Bauchi, Sokoto, Yola and Port Harcourt.

Earlier, the NDIC stated that a limited understanding and widespread misconception of the Deposit Insurance System (DIS) in Nigeria was largely responsible for the pool of unclaimed deposits following bank closures.

NDIC’s Executive Director, Corporate Services, Mrs. Omolola Abiola-Edewor, decribed the problem of limited understanding and misconception is a global challenge to the deposit insurance system. She spoke at the opening ceremony of the 2020 sensitisation seminar for judges of the Federal High Court in Abuja.

Mrs. Abiola- Edewor noted that the problem informed the concerted efforts by NDIC to continuously collaborate with the judiciary and other stakeholders in promoting sound knowledge and understanding of the deposit insurance system over the years.

She said the NDIC would continue to jealously guard its relationship with the Judiciary.

She added that the current economic situation occasioned by the COVID-19 pandemic had further underscored the need to strengthen the collaboration towards enhancing the stability of the financial system.

Describing judgments against the corporation for liabilities of failed banks under liquidation as another challenge confronting it, she noted that effective resolution of legal issues affecting the administration of the DIS was critical to the enhancement of safety and soundness of the banking system.

She said the corporation would be looking forward to drawing from the rich knowledge and experience of the Federal High Court judges on ways of addressing these challenges.

The Chief Judge of the Federal High Court, Justice John Tsoho, noted that the seminar had gone a long way in broadening the knowledge of judges, not only in deposit insurance law and practice, but also in the workings and operations of the financial system.

He said the knowledge from the seminar had enhanced the discharge of the judges’ duties over the past nine years. The Administrator of the National Judicial Institute (NJI), Justice Rosaline Bozimo, in her goodwill message, said the seminar was aimed at consolidating the gains of the NJI and NDIC in exposing judges to best practices in deposit insurance law in particular and the financial system in general. She was represented by the Director of Research, Mr. Gbenga Omotesho.




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