Nigeria CBN Revokes Licences for 110 Microfinance Banks and 3 Primary Mortgage Banks

In the aftermath of the Central Bank of Nigeria's (CBN) recent revocation of licences from 110 microfinance banks (MFBs) and three primary mortgage banks (PMBs), the Nigeria Deposit Insurance Corporation (NDIC) has swiftly disbursed N1.39 billion to 36,163 depositors.

NDIC CEO Bello Hassan revealed that these payments of the statutory insured sums are ongoing. Depositors with funds surpassing the insured limit will receive liquidation dividends after the recovery of debts and the sale of closed banks' physical assets.

Hassan emphasized the corporation's rapid response, initiating the liquidation process within three days of bank closures. Additionally, Hassan highlighted the ongoing verification and payment of liquidation dividends to depositors and stakeholders of 20 banks in liquidation, including Allied Bank, Peak Merchant Bank, Commerce Bank, and others.

He urged the public to deposit funds in licensed banks, cautioning against wonder banks and Ponzi schemes while emphasizing NDIC's commitment to addressing infractions and complaints to enhance depositors' confidence in the financial sector.