A minimum of five microfinance banks in Nigeria’s southeast were shut down in September 2023 due to rising insecurity in the region.
This was disclosed by the Deputy Director of the Nigeria Deposit Insurance Corporation, Pamela Roberts at the Enugu Zonal Office, during the ongoing NDIC Workshop for Business Editors and Finance Correspondents Association of Nigeria held in Lagos, according to Nairametrics.
She also noted that in May 2023, the Central Bank of Nigeria revoked the licenses of 179 microfinance banks and 4 primary mortgage banks.
This action was part of a broader effort to address regulatory compliance and ensure the stability of the financial sector amidst various challenges.
Roberts said, “The licences of 179 MFBs and 4 PMBs were revoked on 23rd May 2023. The Corporation commenced the reimbursement of depositors.”
The Nigeria Deposit Insurance Corporation, is an independent agency of the Federal Government of Nigeria.
The purpose of the deposit insurance system is to protect depositors and guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay their deposits, thereby helping to maintain financial system stability.
