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NDIC seeks prompt rendition of premium from MfBs


The Nigerian Deposit Insurance Corporation (NDIC) has tasked operators of microfinance banks in the country to improve on premium rendition to it.

Managing Director of the corporation, Alhaji Umaru Ibrahim made the call during the MfB operators’ workshop in Abuja, the first in six series to hold in other states including Lagos.  Ibrahim pointed out that since inception, the corporation has collected a paltry sum of N1.6 billion from MfBs, saying, “Most of you would rather put your money on Treasury Bills and go to sleep because of risks associated with lending, but that is not the essence of microfinance banking. The level of premium collected by NDIC which is N1.6 billion by way of premium since 2005 is a paltry sum, if one considers the insured deposit liability of microfinance banks.”

He said that the development is worrisome to regulatory authorities, stating that part of the reason for the stakeholders’ meeting was to enable the forum address some of the difficulties associated with the practice of microfinance banking in Nigeria.

He advised MfB operators to approach the corporation whenever the need arises for assistance, pointing out that reliable and honest information about businesses are prerequisite.

Meanwhile, the Corporation put total insured deposit liability of MFBs at N4.5 billion while close to N2.5 billion had been paid as insured deposit to depositors of closed MFBs.


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