Nigeria Deposit Insurance Corporation (NDIC) said it had commenced payment to depositors of 154 Micro Finance Banks (MFBs) that Central Bank of Nigeria (CBN) revoked their licences in 2018 due to insolvency.

Managing Director of NDIC, Mr Umaru Ibrahim, said this at the Corporation’s day at the ongoing 14th edition of Abuja International Trade Fair.

The event scheduled for September 21 to 29 is with the theme “Remodelling SMEs Financing: Option and Solutions’’.

Represented by Director of Research, Mr Mustapha Ibrahim, the Managing Director said the payment was extended to depositors of six Primary Mortgage Banks (PMBs).

According to Ibrahim, in the last quarter of 2018, CBN revoked the licences of 154 MFBs and six PMBs due to their insolvency and corporate governance issues.

“Hence, the corporation successfully liquidated the failed banks and has commenced payment to the depositors of the failed banks,’’ Ibrahim said.

He said the corporation had investigated and mediated to address complaints from bank customers on various issues that affect them.

“As at June 30, the corporation received 35 petitions/complaints from banks customers on various issues such as ATM frauds, unauthourised funds transfer and cheques related issues.

“Investigations were carried out and where necessary and customers were appropriately reprieved,’’ he said.

He said NDIC would continue to work with CBN to ensure effective supervision of banks and the adherence to prudential guidelines and code of corporate governance for banks.

Ibrahim said this was to ensure their safety and the overall stability of the Nigerian financial system.

He, however, urged small savers to avoid depositing their money with thrift collectors.

“It is imperative to point out the need for traders, artisans, farmers and other small savers to ensure that their savings are deposited in banks or other licensed deposit-taking financial institutions nearest to them.

“This is to avoid losses that could result from incidents of burglaries and other forms of crimes,’’ Mr Ibrahim added.

Earlier, President of Abuja Chamber of Commerce and Industry (ACCI), Mr Adetokunbo Kayode, identified deposit insurance as one of the important pre-requisites for building confidence of the depositors in the formal banking system.

Represented by the Director-General, ACCI, Tonia Shoyele, Kayode said governments in developing and advanced economies grant formal deposit insurance with the aim of reducing the risk of systemic failure of banks.

“By bolstering depositors’ confidence in the stability of the system, deposit insurance may lead to a deeper financial system, which could contribute to higher economic growth rates,’’ he said.

NAN