The Nigeria Deposit Insurance Corporation (NDIC), on Thursday, August 17, 2023, revealed that directors of failed 183 microfinance banks and Primary Mortgage Banks will soon face investigation over their roles in the collapse of the institutions.

The managing director/chief executive officer of NDIC, Bello Hassan, disclosed this during a workshop organised by the corporation for security and law enforcement agencies in Lagos.

Vanguard reports that Hassan said the corporation would soon approach security agencies to investigate some of the failed banks' directors and bosses to bring them to justice and hold them accountable for their collapse.

He added that the corporation would partner with security and law enforcement agencies to prosecute insider abuses in banks, stating that the move has yielded results in the past.

The NDIC boss further said the workshop is designed to complement the Inter-Agency Task Force's efforts to implement the Failed Banks Act.

NDIC to begin payment of depositors of failed banks

In Early August, Hassan made it known that the Corporation has started paying all depositors of banks affected by the license revocation of the Central Bank of Nigeria (CBN).

The affected banks include 178 Microfinance Banks and four Primary Mortgage Banks, 62 of which had already stopped operations, and 74 were declared insolvent. At the same time, 12 were temporarily distressed, and the remaining six were voluntarily liquidated.

Hassan assured that the Corporation would maintain standards and ensure that the public understands the safety of their bank deposits.

Punch reports that the NDIC MD revealed that the Corporation would continue strengthening the financial system to support Nigeria's economic advancement and contribute meaningfully to its financial system and stability.

According to the NDIC boss, the role of the Corporation is to continue to play a critical part in the financial safety net arrangement of Nigeria's banking system as a deposit insurer.

List of failed microfinance banks:

EVANGEL MICROFINANCE BANK

DOMINION MICROFINANCE BANK

ANYA MICROFINANCE BANK

AKWENGWU MICROFINANCE BANK

FADAMA FARMERS MICROFINANCE BANK

SAL-FOL MICROFINANCE BANK

MAUTECH MICROFINANCE BANK

WASE MICROFINANCE BANK

SMARTMICRO MICROFINANCE BANK

AMBA MICROFINANCE BANK

BRIDGE HOUSE MICROFINANCE BANK

MONEY WELL MICROFINANCE BANK

OTUKPO MICROFINANCE BANK

OLOGBON MICROFINANCE BANK

BESTWAY MICROFINANCE BANK

BIYAMA MICROFINANCE BANK

GREENLAND MICROFINANCE BANK

FASILDAPO MICROFINANCE BANK

SUNRISE MICROFINANCE BANK

JOINT FARMERS MICROFINANCE BANK

PROLIFIC MICROFINANCE BANK

HALMOND MICROFINANCE BANK

AJIKOBI MICROFINANCE BANK

KOGI MICROFINANCE BANK

EYOWO MICROFINANCE BANK

ARISE MICROFINANCE BANK

ISI-AKU MICROFINANCE BANK

BMAZAZHIN MICROFINANCE BANK

INI MICROFINANCE BANK

NARICT MICROFINANCE BANK

INTERLAND MICROFINANCE BANK

EHOR MICROFINANCE BANK

BIBAJINRE MICROFINANCE BANK

GOLDEN FUNDS MICROFINANCE BANK

GWADABAWA MICROFINANCE BANK

IBA MICROFINANCE BANK

EDUMANA MICROFINANCE BANK

WEST-END MICROFINANCE BANK

UMEJEI MICROFINANCE BANK

MOUAU VASMUCS MICROFINANCE BANK

JAMIS MICROFINANCE BANK

NEW WORLD MICROFINANCE BANK

ABESTONE MICROFINANCE BANK

NSEHE MICROFINANCE BANK

OSOGBO MICROFINANCE BANK

CROSSOVER MICROFINANCE BANK

DANGIZHI MICROFINANCE BANK