NDIC Forecasts Increase in Microfinance Banks in 2023

By Ebere Obike

The Nigeria Deposit Insurance Corporation, NDIC, says there will be increase in the number of Microfinance Banks in the country this year.

The Managing Director, Mr Bello Hassan, stated this at the 2022 NDIC Editors Forum in Lagos with the theme, “Deposit Insurance System and Financial System Stability.”

Mr Hassan noted that at the end of 2022, the National Association  of Microfinance Banks, NAMBUIT, the apex body of the licensed  banks, had on-board a substantial number of microfinance institutions

He said the collaboration between the Central Bank of Nigeria, CBN, and the  Association’s  In-flight Information Technology, had provided a uniform banking application for all microfinance banks, thereby facilitating seamless submission of returns to the CBN and the NDIC

The NDIC boss explained that the Single Customer Review Reporting Template of Microfinance Banks and Primary Mortgage Banks deployed in 2020 had addressed delays in the payment of depositors, in the event of failure or liquidation.

According to Mr Hassan, the  templates present  a single, unique and consistent information on bank depositors for faster payment of insured claims.

“The Corporation remained committed toward further strengthening of the deposit insurance framework and showing prompt and timely support as well as fast tracking efficient and orderly resolution of troubled insured financial institutions in line with international best practices, he said”.

Mr Hassan added that the NDIC was committed to upscaling its media engagement through collaboration and effective partnership to reach out to critical stakeholders.

The NDIC boss expressed the hope that the editors’ forum would set the agenda for the realisation of the objectives of the engagement.

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