The CBN has Shut Down 42 Microfinance Banks

The license of 42 microfinance banks in Nigeria has been withdrawn by the Central Bank of Nigeria effective from the 12th of November, 2020. All affected microfinance banks will be shut down.

The shutting down of these banks has led to panic and anxiety amongst many Nigerians. Despite the threat of a second wave of COVID 19, people are clamoring to urgently withdraw their deposited funds to avoid losing their money.

In a statement, the Nigeria Deposit Insurance Corporation stated that from Monday the 21st of December, 2020, the claims of depositors of the 42 shut down banks shall be verified. The NDIC assured all those with deposits in the liquidated banks, that they have begun the process of commencing a nationwide payment to insured depositors in the affected microfinance banks.

Some of the Liquidated Banks

AFFECTED BANKS	STATE
Hedgeworth Microfinance Bank	Utako, Abuja
Bagwai Microfinance Bank	Bagwai LGA, Kano
Future Growth Microfinance Bank	Utako, Abuja
Ere City Microfinance Bank	Oriade LGA, Osun State
Can Microfinance Bank	Garki II, Abuja
Partnership Microfinance Bank	Onitsha, Anambra State
Akcofed Microfinance Bank	Uyo, Akwa-Ibom State
Gufax Microfinance Bank	Uyo, Akwa Ibom State
ICB Microfinance Bank	Ilah, Delta State
Hometrust (NATIONS) Microfinance Bank	Nowhere, Imo State
Anima Microfinance Bank	Mbaise LGA, Imo State
Bigthana Microfinance Bank	Ali Akilu Road Kaduna
Rogo Microfinance Bank	Rogo LGA, Kano State
Credit Express Microfinance Bank	Kakawa Street, Lagos
King Solomon Microfinance Bank	Western Avenue, Iponri, Lagos
Wealthstream Microfinance Bank	Apapa, Lagos
Ghetto Microfinance Bank	Ogba/Egbema/Ndoni LGA, Rivers State
Riggs Microfinance Bank	Victoria Island, Lagos
Ringim Microfinance Bank	Ringim, Jigawa State

Nevertheless, the NDIC promised that all insured deposits of the listed bank shall be paid. They further directed that;

“We, therefore, request that all depositors of these banks should visit the closed banks’ addresses and meet NDIC officials for the verification of their claims, commencing from Monday, 21st December 2020 till Thursday, 24th December 2020.”

For further assistance and clarification, eligible depositors are advised to contact the representatives of the director at the Claims Resolution Department of the NDIC in any of the centers/zonal offices in Abuja, Lagos, Enugu, Benin, Kano, Ilorin, Bauchi, Sokoto, Yola, and Port Harcourt.

The NDIC further asserted that the limited understanding and widespread misconception of the Deposit Insurance System (DIS) in Nigeria, was the major reason for the pool of unclaimed deposits following bank closures.

So if you are banking with any microfinance bank confirm if their license has been revoked.

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