NDIC set to pay insured depositors of liquidated Femaz Microfinance Bank

The Nigerian Deposit Insurance Corporation (NDIC) has informed the insured depositors of the liquidated Femaz Microfinance Bank to come forward for verification and payment from Monday, October 5 to Friday, October 9.

In a recent post by NDIC, and seen by Nairametrics, the verification and payment exercise will be conducted at Femaz Microfinance Bank’s Branch on 2 Herbert Macaulay Way, Wuse 2, Abuja.

The affected depositors are to present their cheque books, passbooks, and other proofs of account ownership, together with a valid means of identification on alternate account.

Recall that Femaz Microfinance Bank was part of the 85 microfinance banks in schedule 1 of the official gazette of the Federal Republic of Nigeria, whose license were revoked due to liquidity issues, which means insufficient assets to meet their liabilities and their capital, to risks weighted assets ratio, regulatory capital, all falling below the minimum prescribed by the Central Bank of Nigeria (CBN).

Nairametrics had earlier reported that CBN increased the minimum capital and statutory requirements for microfinance banks in Nigeria. The updated regulatory guidelines now demand for a minimum capital of N200million for a unit Tier 1 microfinance bank by April 2021, with at least N100million by April 2020. In the same vein, unit Tier 2 microfinance banks are expected to upgrade to a minimum capital requirement of N50 million within the period under review, but expected to have been operating under a minimum capital of N35 million by April 2020.

In light of the regulatory reforms pursued by CBN, aimed at ensuring a stable and more liquid financial system, Femaz Microfinance Bank which was registered with CBN on 6th of February, 2015, got blacklisted on September 26, 2018 after falling to satisfy regulatory requirements.

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