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Nigeria to liquidate 42 microfinance banks

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Authorities are verifying the claims of stakeholders of the 42 MFBs that lost their licenses

The Nigeria Deposit Insurance Corporation (NDIC) is liquidating the 42 microfinance banks whose licences were revoked earlier by the Central Bank of Nigeria(CBN), media reports bank. The authorities are verifying the claims of the stakeholders of the 42 banks that lost their operating licences.

The NDIC said through a tweet, “This is to inform the depositors, creditors, shareholders and the general public that the operating licenses of the under listed forty-two (42) Microfinance Banks (MFBs) have been revoked by the Central Bank of Nigeria (CBN), effective 12th November 2020. The Nigeria Deposit Insurance Corporation (NDIC), the Official Liquidator of the banks whose licenses were recently revoked, is in the process of closing the listed banks and pay their insured Depositors.

“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.”

Earlier on November 12th, 2020, The Central Bank of Nigeria (CBN) revoked the licenses of these 42  banks in an attempt to refresh the industry by cutting out the technically insolvent players.

The 42 MFBs are 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.

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