In a recent interview with Vanguard, a regional publication, Alhaji Umar Ibrahim, acting Managing Director of the Nigerian Deposit Insurance Corporation (NDIC), shed light on the ongoing efforts to revitalize the Nigerian microfinance sector. Mr Ibrahim revealed that NDIC examiners had recently finished a comprehensive review of distressed microfinance banks. He stated that many of these banks have not been paying government fees and that many are facing insolvency.

While the framework for dealing with these diverse classes of institutions is still under development, Mr Ibrahim stated that “those that need to be liquidated would be liquidated and depositors would be appropriately paid.”

By Matthew Castner, Research Assistant

Additional Resources:

[1] “Despositors of liquidated microfinance banks will be paid, NDIC boss:” by Babajide Komolafe, Vanguard, June 21, 2010, http://www.proshareng.com/news/singlenews.php?id=11056

MicroCapital’s Microfinance Universe profile: Nigerian Deposit Insurance Corporation (NDIC): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nigeria+Deposit+Insurance+Corporation+%28NDIC%29

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