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Fortis MFB Liquidation: We Adhered To Statutory Guidelines – NDIC

By Barnabas Esiet.

The Nigeria Deposit Insurance Corporation (NDIC) says contrary to misleading reports, it followed statutory guidelines on the distress resolution and liquidation of Fortis Microfinance Bank (MFB) Plc. and the protection of interest of depositors.

In a statement signed by the Director of Communication & Publication Affairs, Dr. Sunday Oluyemi, the corporation noted that the fortunes of Fortis MF declined due to mismanagement and poor corporate governance practices.

According to the statement, after initial efforts by regulatory authorities to revive the bank failed, the CBN was left with no other option than to revoke its operating license in December, 2018.

“As soon as Fortis MFB’s operating licence was withdrawn, the NDIC in line with its mandate swiftly verified the defunct MFB’s depositors and commenced payment of the insured sums up to the maximum limit. The statement read..

The Corporation explained that the failed bank’s depositors were paid N2 billion, released to the Interim Management Committee by the Committee of Governors of the apex bank, to ease their plight.

MD/CEO, NDIC, Umaru Ibrahim

Concerning complaint by a business businesswoman, Uju Ohanenye, who accused the Corporation of failure to pay the balance of N222.4m out of her fixed deposit of N301 million in Fortis MFB, the NDIC noted that she was duly paid her entitlement after liquidation of the Bank.

According to the statement, Ohanenye was paid a total of N74,703,867.65  on compassionate ground owing to the ill health of her husband as she was only entitled to the regulatory N200,000.

“It is essential for Mrs. Ohanenye and other depositors to be properly advised that microfinance banks were established to provide affordable banking services to the economically “active poor”, that is, the low income individuals and enterprises, as a way of promoting financial inclusion. The statement read.


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