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The license of 42 microfinance banks in Nigeria has been withdrawn by the Central Bank of Nigeria effective from the 12th of November, 2020.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.

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Some of the Liquidated Banks

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So if you are banking with any microfinance bank confirm if their license has been revoked.

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