How Safe are Our Monies with These Banks? 55 Directors and Staff of Microfinance Banks Prosecuted in 2011 – NDIC

With the corruption profile of Nigeria being what it is – something to worry a lot about – do Nigerians sometimes wonder how safe it is to save money in our banks? In recent news, it was revealed that the Nigeria Deposit Insurance Corporation (NDIC) prosecuted 55 directors and staff of micro finance banks over their roles in the collapse of 19 micro finance banks in 2011.

The NDIC, in its 2011 annual report and statement of accounts released to the media in Abuja disclosed that as part of its efforts to sanitise the micro finance sub sector, about 55 directors, staff and related parties of 19 closed micro finance banks, who were found to be responsible for the collapse of their banks, were prosecuted in 2011 to serve as a deterrent to would-be fraudsters in the sub sector.

Hence, following the revocation of operating licences of 103 micro finance banks in 2010, the corporation said it paid the aggregate sum of N2.024billion to about 70,424 depositors of the closed banks in August 2011 as against the N1billion paid in December 2010.

The corporation also stated in the report that the amount paid represented about 41 per cent of the total insured amount of about N4.94billion. During the year under review, the corporation said it continued with the payment of insured sums and liquidation dividends to uninsured depositors of all the banks in liquidation. No wonder it was recently reported that about just 5 banks I the country are really healthy as of now.

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