Post by Trade facilitator on Dec 27, 2020 14:25:32 GMT 1
Panic Grips Depositors As CBN Is Set To Liquidate 42 Microfinance Banks Across Nigeria
News filtering in us has it that the Central Bank of Nigeria (CBN) has revoked the licences of 42 Microfinance banks in Nigeria and has closed them.
This was disclosed by the Nigeria Deposit Insurance Corporation (NDIC) in a statement to the public. The NDIC also disclosed that it will immediately start the process of verifying the claims of depositors of the banks affected by this action which will start on Monday, December 21, 2020 and ends on Thursday, December 24, 2020.
This news naturally will cause panic within the banking community which is likely to lead to panic withdrawal of their deposits from banks. But the Nigeria Deposit Insurance Corporation (NDIC) has allayed such fears saying that it has begun the process of paying insured depositors of the liquidated banks across Nigeria.
The statement from the NDIC authorities disclosed that for further clarification or any assistance that eligible depositors should contact the representatives of the Director, Claims Resolution Department of the Corporation in any of the centre/zonal offices in Abuja, Lagos, Enugu, Benin, Kano, Ilorin, Bauchi, Sokoto, Yola and Port Harcourt.
The following are the Microfinance Banks affected: 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. Others are 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 Titun MFB, Ogba, Lagos and Sapphire MFB, Uyo, Akwa Ibom State.
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.
The rate at which Microfinance Banks collapse in Nigeria is very alarming and disheartening. These are supposed to be banks established to cater for the financial needs of small scale businesses that cannot be reached by large banks and financial institutions.
Micro Financing all over the world is supposed to be for the poor, the underprivileged and very low income households. But from what we are seeing these days in Nigeria happening is that they are dying daily and there seems to be nothing being done to save them.
What is going to be the fate of the poor masses that these banks are supposed to serve? There are many poor masses and extremely low income groups that borrow money from these microfinance Banks to trade and feed their families. These banks lend as low as N20, 000 to these poor Nigerians to start or support their existing businesses.
It is extremely important that the government wakes up to avert the catastrophe that is about to blow up in our faces. Are we not aware of the consequences of denying low income earners and very small scale business men and women of the only source of finance to start or upgrade their businesses?
We in this forum are pleading with the Central Bank of Nigeria (CBN) to look for alternatives to small scale funding for the poor and vulnerable in our society.
News filtering in us has it that the Central Bank of Nigeria (CBN) has revoked the licences of 42 Microfinance banks in Nigeria and has closed them.
This was disclosed by the Nigeria Deposit Insurance Corporation (NDIC) in a statement to the public. The NDIC also disclosed that it will immediately start the process of verifying the claims of depositors of the banks affected by this action which will start on Monday, December 21, 2020 and ends on Thursday, December 24, 2020.
This news naturally will cause panic within the banking community which is likely to lead to panic withdrawal of their deposits from banks. But the Nigeria Deposit Insurance Corporation (NDIC) has allayed such fears saying that it has begun the process of paying insured depositors of the liquidated banks across Nigeria.
The statement from the NDIC authorities disclosed that for further clarification or any assistance that eligible depositors should contact the representatives of the Director, Claims Resolution Department of the Corporation in any of the centre/zonal offices in Abuja, Lagos, Enugu, Benin, Kano, Ilorin, Bauchi, Sokoto, Yola and Port Harcourt.
The following are the Microfinance Banks affected: 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. Others are 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 Titun MFB, Ogba, Lagos and Sapphire MFB, Uyo, Akwa Ibom State.
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.
The rate at which Microfinance Banks collapse in Nigeria is very alarming and disheartening. These are supposed to be banks established to cater for the financial needs of small scale businesses that cannot be reached by large banks and financial institutions.
Micro Financing all over the world is supposed to be for the poor, the underprivileged and very low income households. But from what we are seeing these days in Nigeria happening is that they are dying daily and there seems to be nothing being done to save them.
What is going to be the fate of the poor masses that these banks are supposed to serve? There are many poor masses and extremely low income groups that borrow money from these microfinance Banks to trade and feed their families. These banks lend as low as N20, 000 to these poor Nigerians to start or support their existing businesses.
It is extremely important that the government wakes up to avert the catastrophe that is about to blow up in our faces. Are we not aware of the consequences of denying low income earners and very small scale business men and women of the only source of finance to start or upgrade their businesses?
We in this forum are pleading with the Central Bank of Nigeria (CBN) to look for alternatives to small scale funding for the poor and vulnerable in our society.
