NDIC Assures 100 Percent Coverage Of Depositors In Failed MFBs

The Nigeria Deposit Insurance Corporation (NDIC) has said it will provide 100 per cent cover for verified depositors’ claims depositors in failed 154 Microfinance Banks (MfBs).

The licences of the banks were revoked by the Central Bank of Nigeria (CBN) last month. It said from record obtained, majority of the depositors especially in the MfBs have less than N200,000 in their accounts.

NDIC Managing Director and Chief Executive, Umaru Ibrahim said the corporation in fulfilling its core mandate of insuring depositors, will soon start paying the verified claims to appropriate depositors, including those in the six Primary Mortgage Banks (PMBs) whose licences were also revoked.

He spoke in Lagos during the ongoing at Lagos International Trade fair organised by the Lagos Chamber of Commerce and Industry (LCCI).

He said the licences were revoked due to erosion of their capital base, poor liquidity, inept management as well as some insiders helping themselves with loans they never intend to pay back. It was further worsened by boisterous lifestyle of management that remained at variance with the philosophy of microfinance banking operations.

Photo Caption: NDIC Managing Director and Chief Executive, Umaru Ibrahim.