NDIC to Liquidate More Banks, Lists Names, Locations as Heritage Bank Customers Get Payment
- The Nigeria Deposit Insurance Corporation (NDIC) has said it is set to liquidate 87 microfinance banks
- The corporation said it is seeking an order of a High Court to embark on the liquidation
- It filed a notice on August 23, 2024, listing the affected banks whose licences were revoked by the CBN
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian Deposit Insurance Corporation (NDIC) will, at the expiration of its notice filed on August 23, 2024, approach a federal high court to obtain an order to dissolve 87 microfinance banks and primary mortgage banks in Nigeria.
The corporation disclosed this in a a notice on its website, stating that by its enabling laws, it will, at the expiration of 30 days from the date of the publication, present an application to the Federal High Court to obtain dissolution orders of the closed banks and to release/discharge corporation as Liquidator of the banks.
Source: UGC
NDIC gives reasons for liquidation
The agency gave the reasons for the actions, stating that the affected banks were either not located or embarked on self-liquidation.
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About 62 affected financial institutions are microfinance banks, and 25 are primary mortgage banks.
The Central Bank of Nigeria had revoked the licenses of about 80 financial institutions because they were not located, while the other eight banks embarked on self-liquidation.
According to the NDIC notice, 16 banks are located in Abuja, 52 in Lagos, five in Rivers State, three in Kogi State, and two in Bayelsa and Delta States.
Edo state has two affected banks, while Akwa Ibom, Kwara, Ondo, Osun, and Oyo states each have one bank.
The development comes as the corporation said it has made significant strides in compensating about 86% of the total insured deposits.
NDIC pays Heritage Bank customers
The remaining 14% of insured deposits have yet to be disbursed, and efforts are ongoing to address various challenges hindering payments.
The NDIC stated this during a recent retreat for the House of Representatives Committee on Insurances and Actuarial Matters in Lagos.
According to reports, the NDIC managing director, Bello Hassan, represented by Emily Osuji, disclosed specific issues delaying the final payments, such as accounts with Post No Debit (PND) instructions imposed by courts or regulatory powers, KYC limitations and customers who have yet to complete necessary verification checks.
NDIC lists steps to claim trapped funds
Legit.ng earlier reported that the Nigeria Deposit Insurance Corporation (NDIC) had begun paying customers of the defunct Heritage Bank two weeks after the Central Bank of Nigeria (CBN) revoked the bank’s license.
A bank customer said he received the N10,000 left in his account with Heritage Bank.
Ayodeji Olowe, founder of the loan management system Lendsqr, reportedly said the NDIC deposited the money in his alternative account using his BVN.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
