NDIC To Begin Probe Of Directors Of 183 Failed Banks

Three months after the revocation of the licenses of 179 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation has disclosed plans to probe the directors of these banks.

The Managing Director, NDIC, Mr Bello Hassan, said this during a capacity building workshop for law enforcement agencies.

The event has as theme, ‘Effective collaboration in the fight against fraud and financial malpractices in banks and other financial institutions in Nigeria.”

Represented by the Head, Legal Department, NDIC, Mr Henry Fomah, the MD said through collaborative efforts, 12 prosecution cases are on-going at various courts, 25 on-going investigations with FMIU, 11 with EFCC and five concluded investigations are with Federal Ministry of Justice for advice and prosecution.

He said the objective of the probe of some of the directors and officers of these institutions will help to bring those found culpable in the collapse of these institutions to book.

He said, “I am aware that 12 prosecution cases are on-going at various courts, 25 on-going investigations with FMIU, 11 with EFCC and five concluded investigations with Federal Ministry of Justice for advice and prosecution.

“This is an indication that we are on the right course. As you are all aware, the Central Bank of Nigeria recently revoked banking licences of 183 Microfinance Banks and Primary Mortgage Banks which may require you to be called upon to investigate some of the directors and officers of these institutions with a view to bring to book those found culpable in the collapse of these institutions.”

The Central Bank of Nigeria had in May revoked the operating licenses of 179 microfinance banks in the country.

This was disclosed in the official gazette of the Federal Government, which was published on the website of the CBN.

The gazette stated that the licenses of the financial institutions were revoked because they ceased to carry on in Nigeria, the type of business for which their licences were issued for a continuous period of six months.

The banks also failed to fulfil or comply with the conditions subject to which their licences were granted; or failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.

The microfinance banks include – Atlas Microfinance Bank, Bluewhales Microfinance Bank, Everest Microfinance Bank, Igangan Microfinance Bank, Mainsail Microfinance Bank, Merit Microfinance Bank, Minna Microfinance Bank, Musharaka Microfinance Bank, Nopov Microfinance Bank, Ohon Microfinance Bank, and others.

Finance companies whose licenses were revoked include – HHL Invest & Trust Limited, TFS Finance Limited and Treasures & Trust Limited while the four primary mortgage banks whose licenses were revoked are – Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans and Kogi Savings & Loans.

Following the revocation of licenses of 179 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) had assured depositors of the closed banks speedy payment of their insured sums.

Hassan had said as deposit insurer, the NDIC would begin the process of payment of the insured sums immediately with the verification of eligible depositors at the respective premises of the closed banks.