The NDIC receives a directive to close 96 mortgage and microfinance banks

According to the Nigeria Deposit Insurance Corporation, 96 of the 183 microfinance and primary mortgage banks whose licenses were withdrawn by the Central Bank of Nigeria in May 2023 had Winding up Orders acquired for them.

This was disclosed by NDIC Managing Director Bello Hassa during a sensitization conference the NDIC hosted for Federal High Court judges in Lagos on Thursday in an effort to educate the judiciary about the nuances of the banking sector.

As of right now, 96 out of 183 Micro Finance and Primary Mortgage Banks had Winding up Orders obtained by the Corporation for having had their licenses revoked by the CBN in May 2023, less than a year after the revocation, according to Hassan.

In order to increase trust in the financial system, he continued, the NDIC was dedicated to carrying out its mission of safeguarding depositors through bank monitoring, failure resolution, and liquidation.

Hassan stated, “We recognize the judiciary as one of our critical stakeholders,” in reference to the role that the court plays in carrying out the mandate. This allows them to expedite hearings and declare justice in instances that are brought before them.

Hassan mentioned a few successes from earlier seminars when he stated that there were fewer cases of litigation related to liquidation that took longer than expected.