The Nigeria Deposit Insurance Corporation (NDIC) said it adhered to statutory guidelines on the distress resolution and liquidation of Fortis Microfinance Bank (MFB) Plc and the protection of interest of depositors.
This includes the payment of N2 billion by the Committee of Governors of CBN to the bank’s depositors in order to ease the hardship being experienced by them.
A statement by NDIC spokesman, Dr. Sunday Oluyemi, said the initial efforts by regulatory authorities involved the setting up of joint CBN/NDIC Interim Management Committee (IMC) to manage the affairs of the bank towards stemming the tide of its mismanagement and also to protect the interest of its depositors.
“The intervention by the IMC also included the payment of N2 billion released to it by the Committee of Governors of CBN to the bank’s depositors in order to ease the hardship being experienced by them.”
Giving a breakdown, NDIC said the committee first adopted corrective and supervisory measures, including the sacking of the management, and replacing the board of directors. Secondly, CBN revoked the operating licence of Fortis MFB in December 2018 and subsequently liquidated by NDIC, after the failed efforts to rebound it.
“The depositors of the affected closed banks who filled their claims have been paid all their deposits.”
Addressing a complaint by one Mrs Uju Ohanenye, who accused NDIC of unpaid N222.4m in Fortis, NDIC said it has not failed her.
It said Mrs. Ohanenye was paid N74.704m in two tranches of N18m from the N2bn approved by the IMC, and another N56.794m.
“Subsequently, Mrs. Ohanenye was paid another sum of N200,000 (Two Hundred Thousand Naira Only) which she was entitled to after the liquidation of Fortis Microfinance Bank (MFB) Plc,” it stated.
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