The Nigeria Deposit Insurance Corporation (NDIC) has announced that it has successfully secured winding up orders for 96 out of the 183 microfinance and primary mortgage banks whose licenses were revoked by the Central Bank of Nigeria (CBN) in May 2023. This significant progress was revealed by the Managing Director of NDIC, Bello Hassan, on Thursday during a sensitization seminar held for Federal High Court judges in Lagos. The seminar was organized by the NDIC to provide the judiciary with a deeper understanding of the complexities and intricacies of the banking industry.
Hassan highlighted the swift action taken by the NDIC in securing the winding up orders, stating, “As of today, the Corporation has obtained winding up orders for 96 out of the 183 microfinance and primary mortgage banks whose licenses were revoked by the CBN in May 2023, in less than one year of revocation.” This achievement underscores the NDIC’s dedication to its mandate of safeguarding depositors’ interests through rigorous bank supervision, effective failure resolution, and orderly liquidation processes.
The NDIC’s efforts aim to enhance confidence and stability within the financial system, a goal that Hassan reiterated during his address. He explained that in order to fulfill this mandate effectively, it is crucial to ensure that the judiciary is well-informed about the NDIC’s practices and the broader banking sector. “We recognize the judiciary as one of our critical stakeholders. With this, when cases are brought before them, they can receive accelerated hearing and proclamation of justice,” Hassan noted.
The seminar served as a platform for the NDIC to engage with judges and provide them with insights into the financial sector’s regulatory framework and the specific roles and responsibilities of the NDIC. This knowledge is expected to facilitate more efficient handling of cases involving banking sector issues, ultimately contributing to the stability and integrity of Nigeria’s financial system.
