NDIC Worried Over Low Remittances From MFBs

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The Nigeria Deposit Insurance Corporation, NDIC, has expressed worry over the low level of premium remittances by Micro Finance Banks (MFBs).

The corporation also announced it has set aside N16 billion intervention fund to depositors of MFBs in case of failure.

The Managing Director/Chief Executive Officer of NDIC, Alhaji Umaru Ibrahim, disclosed this in Abuja at a workshop organized for the operators of microfinance banks.

He said the NDIC would not be able to meet its obligations adequately if the premium of MFBs are not remitted as at when due and disclosed that so far about N1.6 billion has been remitted as premium by the MFBs.

The NDIC boss also revealed that about N4.5 billion was expected to be paid on insured deposit liabilities while urging the MFBs to take the issue of consumer protection seriously by allowing customers unrestricted access to desk officer and top management to lay their complaint.

The Managing Director who stressed the important role of micro credit and microfinance banks in driving financial inclusion especially to the rural poor, urged the operators to do better to surmount the challenges facing them.

He informed that the NDIC was partnering with the Central Bank of Nigeria, CBN, in an on-going continuous certification programme, adding that a lot of time and energy are being invested to ensure that the microfinance banks remain stable.

Lamenting the problems facing the sector, the MD said: “we know the problems of microfinance banks world over, issues of risk management, corporate governance among others. To us, capital adequacy is a priority to ensure the banks are stable.

“In case of safety and soundness, we said we would extend the hand of friendship…

“There would be a lot of conditions, in case any of your institutions is going under, we would act as your adopter.”