Nigeria Deposit Insurance Corporation (NDIC) has liquidated 21 Primary Mortgage Banks (PMBs), following the revocation of their operating licences by the Central Bank of Nigeria (CBN).

It would be recalled that CBN issued the revocation order of the 21 Primary Mortgage Banks (PMBs) as well as one microfinance bank via its gazettes dated November 14 and 19, 2014, and appointed NDIC the provisional liquidator to wind up affairs of the closed financial institutions.

To this end, the NDIC has issued a public notice announcing the closure of the financial institutions. The notice stated: “This is to inform Depositors, Creditors, Shareholders and the General Public that the operating licences of the under listed Twenty-One (21) Primary Mortgage Banks (PMBs) and One (1) Microfinance Bank have been revoked by the Central Bank of Nigeria (CBN) via gazettes dated 14th and 19th November, 2014 respectively and the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the provisional liquidator to wind up the affairs of the closed institutions.

Consequently, the Nigeria Deposit Insurance Corporation has commenced the process of orderly winding up of the affairs of the affected PMBs/MFB and will soon be making announcement/publication on the verification and payment of insured deposits.” The corporation therefore called on stakeholders to contact the Director, Claims Resolution Department or any of the Corporation’s Zonal Offices for further enquiries and necessary assistance.

At a workshop on ‘Credit Underwriting Standards for NDIC Examiners’ in Lagos, recently, NDIC Managing Director, Alhaji Umaru Ibrahim, confirmed the liquidation. He said available records showed that the PMBs’ Portfolio at Risk averaged 45.70 percent, which is more than the prescribed 5 percent threshold. “In its bid to clean the system, on 5thJanuary, 2015, the CBN revoked the License of 21 PMBs and handed same to NDIC for Liquidation. Our attention is now being focused on the PMB sub-sector so as to address the emerging challenges, especially in Credit Underwriting Standards.

PMBs in Nigeria can create significant impact if only they adhere to recommended corporate governance practices, based on effective and sustainable risk management practices as instituted by the Regulatory Authorities. In particular, PMBs should be interested in enhanced Credit Underwriting Standards because their loan portfolios are on a variable rate and therefore sensitive to Monetary Policy Rate (MPR) fluctuations,” he said.

The list of affected institutions include: Alliance and General Mortgage Limited, Benhouse Building Society, Consolidated Estate Building Society, Cymon Savings and Loans, Euro-Banc Savings and Loans, First Amalgamated Building Society, First Capital Savings and Loans, Global Building Society as well as Harvard Trust Savings and Loans.

Others are Home Foundation Savings and Loans, Jubilee Building Society, Lagoon Homes Savings and Loans, Leverage Home Savings and Loans, Midland Mortgages, Mortgage PHB, MultiBlanc Savings and Loans, Mustard Seed Mortgage, Omega Savings and Loans, Password Savings and Loans, Post Service Savings and Loans, TMC Savings and Loans, as well as Crystal Edge Microfinance Bank.

Subscribe to our youtube channel


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.