Business - Banking & Finance
Updated: December 21, 2020

Here's Why 42 Microfinance Banks Are To Be Liquidated By NDIC, CBN

By Olalekan Fakoyejo
December 20, 2020
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(Photo Credit: Nairametrics)

Forty-two Microfinance banks are heading out of business as the Nigeria Deposit Insurance Corporation (NDIC) is set to liquidate them after conducting a verification exercise that will last for four days. The move comes as the Central Bank of Nigeria (CBN) revoked their license last month, ending their operation.

Why The Revocation Of The 42 Microfinance Banks?

The CBN revoked their operating license effective November 12, 2020, due to the forty-two banks rising Non-Performing Loans (NPLs), which led to high portfolio risk, affecting their balance sheet, and reducing liquidity to continue operation.

NDIC stated that pursuant to the CBN directive, the corporation will be conducting the verification exercise between Monday 21 and Thursday 24 December, 2020 to confirm claims of stakeholders, depositors and creditors of the forty-two Microfinance Banks - After the process, claims of all parties, including depositors will be paid.

Microfinance Banks Set To Be Liquidated

Prior to the recent liquidation, two years ago, the CBN had revoked operating license of over 153 Microfinance Banksand six Primary Mortgage Banks (PMBs). Now, forty-two Microfinance banks have been added to the list which includes;

Hedgeworth MFB, Utako, Abuja; Future Growth MFB, Utako, Abuja; Bagwai MFB, Bagwai LGA, Kano; Ere City MFB, Oriade LGA, Osun State; Cafon MFB, Garki II, Abuja; Akcofed MFB, Uyo, Akwa-Ibom State; Gufax MFB, Uyo, Akwa Ibom State, Partnership MFB, Onitsha, Anambra State; ICB MFB, Ilah, Delta State; Onima MFB, Ezinihite Mbaise LGA, Imo State; and Hometrust (NATIONS) MFB, Nkwere, Imo State.

Ringim MFB, Ringim, Jigawa State; Bigthana MFB, Ali Akilu Road, Kaduna; Rogo MFB, Rogo LGA, Kano State; Makoda MFB, Makoda LGA, Kano; Takai MFB, Takai LGA, Kano State; Bebeji MFB, Bebeji L.G.A., Kano State; Ajingi MFB, Ajingi LGA, Kano State; Garko MFB, Garko, Kano; Kangiwa MFB, Kangiwa LGA, Kebbi State; Augie MFB, Augie LGA, Kebbi State; Mopa MFB, Mopa, Kogi State; Solid Base MFB, Ijumu LGA, Kogi State;

Ultimate Benefit MFB, Lokoja, Kogi State; Ovidi MFB, Okene, Kogi State; Kirfi MFB, Kirfi LGA, Bauchi; Credit Express MFB, Kakawa Street, Lagos; King Solomon MFB, Western Avenue, Iponri, Lagos; Riggs MFB, Victoria Island, Lagos; Billionaire Blue Bricks MFB, Ajah, Lagos; Susu MFB, Yaba, Lagos; Wealthstream MFB, Apapa, Lagos; Aguda Titan MFB, Ogba, Lagos and Sapphire MFB, Uyo, Akwa Ibom State.

Completing the list are Metro MFB, Ogba, Ikeja, Lagos, Mountain Top MFB, Trade Fair Complex, Lagos; Unyogba MFB, Ofu LGA, Kogi State; Wapo MFB, Okene, Kogi State; Ibogun MFB, Ifo LGA, Ogun State; Korede MFB, Igbotako, Ondo State; Ahetou MFB, Ogba/Egbema/Ndoni LGA, Rivers State and Fufore MFB, Yola, Adamawa State.