L
LequteMan
Guest
Managing Director of the Nigeria Deposit Insurance Corporation, Alhaji Umaru Ibrahim, appearing before the Senate Committee on Banking and Currency to defend his agency’s 2014 budget on Tuesday, said the Central Bank of Nigeria has approved the liquidation of 83 licensed micro finance banks.
He said that it was discovered that some of the micro finance banks “existed only on paper while some are used to defraud Nigerians.”
Elaborating, he said there were up to 900 micro finance banks operation in Nigeria out of which 83 of them have been listed for liquidation.
According to him, the NDIC was already working towards determining the number of depositors and how much each deposited in the banks in order to pay them.
“Some assets of the banks will also be sold. There is no doubt that the operations of some of the micro finance banks have become epileptic,” he said.
He added that N105 billion was provided for in the 2014 budget to pay off depositors of liquidated banks.
He said, “Funding gap is what we do to prepare for the rainy day. We hope and pray that the rainy day does not come but any insurance should prepare for the rainy day. As we speak, no bank benefited from the fund in 2013.”
According to Punch, he also told the committee that NDIC initiated rebranding operations to ensure better service.
He said that it was discovered that some of the micro finance banks “existed only on paper while some are used to defraud Nigerians.”
Elaborating, he said there were up to 900 micro finance banks operation in Nigeria out of which 83 of them have been listed for liquidation.
According to him, the NDIC was already working towards determining the number of depositors and how much each deposited in the banks in order to pay them.
“Some assets of the banks will also be sold. There is no doubt that the operations of some of the micro finance banks have become epileptic,” he said.
He added that N105 billion was provided for in the 2014 budget to pay off depositors of liquidated banks.
He said, “Funding gap is what we do to prepare for the rainy day. We hope and pray that the rainy day does not come but any insurance should prepare for the rainy day. As we speak, no bank benefited from the fund in 2013.”
According to Punch, he also told the committee that NDIC initiated rebranding operations to ensure better service.
