By Babajide Komolafe & Michael Eboh
KADUNAâ€”The Nigerian Deposit Insurance Corporation (NDIC), said a majority of microfinance banks (MFBs), in the country have closed shop.
NDIC’s Deputy Director, (Research), Dr. JacobÂ Afolabi, at a workshop organised for finance correspondents in Kaduna, said less than half of MFBs file returns to the Central Bank of Nigeria (CBN) and NDIC.
He noted that regulating the banks has been a major challenge to NDIC and CBN, as letters sent to a majority of the banks seeking to know their present status were either ignored orÂ returned undelivered, indicating that they are no longer in operation.
According to him, â€œWe have a problem in the microfinance sector and this is making it difficult to regulate it.
”From our records, less than 50 per cent of the operators of MFBs are actually complyingÂ with statutory regulations, such as filing of returns and giving reports of their activities on a timely basis.
”Letters sent to these microfinance institutions to determine their status were always sent back, meaningÂ they haveÂ stopped operating.â€
He said NDIC has commenced theÂ regularisation for microfinance banks to know their status.