The Nigeria Deposit Insurance Corporation said that it would pay depositors of closed microfinance and primary mortgage banks once the debts are recovered from those owing the banks
This was disclosed by the NDIC Department of Communication and Public Affairs, Mr Alfred Ijah, according to Nairametrics.
On Thursday, NDIC disclosed it received winding-up orders for 96 out of 183 Microfinance and Primary Mortgage Banks after the Central Bank of Nigeria withdrew their licences.
The Managing Director of NDIC, Bello Hassan said, “As of date, the Corporation had obtained Winding up Orders for 96 out of 183 Micro Finance and Primary Mortgage Banks whose licenses were revoked by the CBN in May 2023, in less than one year of revocation.”
“We recognise the judiciary as one of our critical stakeholders. With this, when cases are brought before them, they can receive accelerated hearing and proclamation of Justice.”
However, commenting on this development, Ijah said NDIC’s job does not emerge without the CBN revoking the licenses of banks that breached some of the laws of the regulators.
In addition, Ijah said that the Company’s ongoing plans to ensure depositors of affected banks get their money.
He said “When the license is revoked, and we have winding up order, after everything is done, what we intend to do is that it gives us power to get into the banks and realize their assets.
“In realizing assets, we tend to look for people that are owing the banks, the debtors, their assets and sell so that we can pay depositors.
“The (closed) bank already has assets, buildings, cars, etc. When we say realize the asset, we sell the assets to get all the money we can gather to pay depositors their balance.”
“It is from the sale of the assets and realization of debts from debtors that we will use to pay those people.”
Ijah said that the NDIC did not stop with obtaining a winding-up order.
He explained there are several official and legal steps to be taken to ensure depositors are paid.
“There are different things to be done. If CBN has revoked the license, what it tells you is that we are moving to another phase. We have paid depositors. We have gotten a license to wind down officially and legally. Then, we start selling assets,” he added.
Furthermore, he said that given that the NDIC has no control over the period for proper closure of the banks and settlement of depositors concerned, its step-by-step procedures will ensure a timely refund.
Recall that NDIC ten months ago said it had started the process of payment of depositors in 179 microfinance banks and four primary mortgage banks across the country.
The Commission called on depositors affected by the liquidation to open alternative bank accounts at commercial banks for their payments.
