Depositors Lose Money as 18 Primary Mortgage Banks (PMBs) Collapse

bankruptThe depositors in at least 18 collapsed primary mortgage banks (PMBs) in the country may have lost their deposits, as the Nigeria Deposit Insurance Corporation (NDIC) lamented that the collapsed banks could not be traced, stressing that they merely existed as paper institutions.

While announcing the commencement of liquidation of seven out of the 25 primary mortgage banks recently closed by the CBN, with payment of compensation to their depositors, the NDIC Managing Director, Alhaji A. Ibrahim, lamented the difficulties being encountered by the corporation in the liquidation process of 18 others, as their records could not be traced at the Corporate Affairs Commission (CAC).

Alhaji Ibrahim made this known while speaking in Abuja when the board of directors and management of the Federal Mortgage Bank of Nigeria (FMBN) paid him a visit. He disclosed further that it was difficult for the corporation to determine the deposit liabilities of the banks, due to their failure to render statutory returns to the CBN and mandatory premium to the NDIC.

He however said the corporation had decided to reimburse depositors of seven identified PMBs, as the NDIC commenced liquidation process in them. The NDIC boss said the decision to reimburse depositors of the seven identified PMBs was part of the unwavering commitment of the corporation to the protection of depositors of all licensed insured institutions.

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