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NDIC to pay depositors of 96 failed micro finance banks from debt recoveries, others



The Nigeria Deposit Insurance Corporation(NDIC) has said it will pay depositors of closed microfinance and primary mortgage banks after recovering debts from those owing the failed banks, among others.

This was explained to ThePressNG on Monday in a phone call with Mr Alfred Ijah of the NDIC Department of Communication and Public Affairs.

Recall that the NDIC disclosed on Thursday that it obtained winding-up orders for 96 out of 183 microfinance and primary mortgage banks following the withdrawal of their licenses by the Central Bank of Nigeria(CBN) in May 2023.

The disclosure was made at a sensitization seminar for Federal High Court judges in Lagos on Thursday.

What the Managing Director, of NDIC, Bello Hassan said,

Speaking further on the development, Ijah said NDIC’s job does not crystalize without the CBN revoking the license of affected banks that breached some of the laws of the apex bank regulator.

Ijah added that the sale of the affected bank assets and the recovering monies owed by debtors is central to the corporation’s ongoing plans to refund depositors of the affected banks.

Ijah said the NDIC does not stop at obtaining a winding-up order.

He explained there are several official and legal steps to be taken to ensure depositors are paid.

He added that though the NDIC does not “have control over” the time frame of carrying out the proper closure of the affected banks as well as settlement of depositors, its step-by-step procedures will ensure timely refunds to depositors.