Nigeria Deposit Insurance Corporation (NDIC) has announced its plans to expedite the liquidation of 179 microfinance banks that had their licenses revoked by the Central Bank of Nigeria (CBN). This decision comes after the CBN took action earlier this week, revoking the licenses of these microfinance banks, in addition to four primary mortgage banks and three finance companies.
During a lecture held at Rumfa College in Kano to commemorate the 2023 Financial Literacy Day, Shehu Usman, the Coordinator of NDIC Kano zonal office, disclosed this information. He revealed that the CBN had already provided the list of the affected microfinance banks, primary mortgage banks, and finance companies to the NDIC for the final liquidation process. Usman emphasized that the corporation’s primary responsibility is to safeguard and guarantee the financial interests of Nigerians, which is why they are collaborating closely with the CBN to achieve this objective.
As part of the event, Usman took the opportunity to caution bank customers against depositing their funds in any banks that do not display the NDIC’s sticker. He urged customers to opt for institutions that are insured, thereby ensuring the safety of their deposits.
Furthermore, the Financial Literacy Day event aimed to impart financial knowledge to students. Usman highlighted the importance of equipping students with an understanding of financial transactions and how to navigate them effectively. The NDIC zonal coordinator explained that the initiative seeks to educate students on various aspects, including operating different types of accounts and managing business transactions. By arming young individuals with these financial literacy skills, they can make informed decisions about investments and savings.
During the event, Khadija Masanawa, an official from the NDIC Kano zonal office, provided insights into the establishment of the NDIC. She underscored that the corporation was created to prevent the recurrence of the adverse consequences witnessed during the late 1940s and early 1950s when depositors had no formal mechanism to protect their funds. Masanawa further revealed that the NDIC has extended deposit guarantees to a total of 984 CBN-licensed banks nationwide, highlighting the organization’s commitment to ensuring financial stability.
Safiyanu Na’abba, the Principal of Rumfa College, commended the NDIC for organizing the program. He expressed his gratitude for the enlightenment it provided to both the school’s staff and students regarding the operations of the corporation.