The Nigeria Deposit Insurance Corporation (NDIC) reportedly has announced that it will give Nigerian microfinance banks (MFBs) the option to execute mergers and acquisitions to minimize the liquidations among MfBs and to create strong players in the industry. NDIC protects depositors by guaranteeing the settlement of insured funds when a deposit-taking financial institution can no longer pay out its deposits.
Data from the US-based nonprofit Microfinance Information Exchange indicates that 24 microlenders in Nigeria have loans of USD 84.4 million outstanding to 482,300 micro-borrowers as of December 2010.
About the Nigeria Deposit Insurance Corporation (NDIC):
The Nigeria Deposit Insurance Corporation (NDIC) is a quasi-independent agency of the federal government of Nigeria. Its purpose is to protect depositors and guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay its deposits, thereby helping to maintain the stability of the financial system.
By Ariana Malushi, Research Associate
Sources and Additional Resources
Vanguard: MfB operators laud mergers, acquisitions
http://www.vanguardngr.com/2011/12/fortis-mobile-money-signs-mou-with-namblag/
MicroCapital.org Story, October 1, 2010, “MICROCAPITAL BRIEF: Central Bank of Nigeria Revokes Licenses of 224 Microfinance Banks”
https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-revokes-licenses-of-224-microfinance-banks/
MicroCapital.org Story, May 5, 2011, “MICROCAPITAL BRIEF: Central Bank of Nigeria Inspecting Microfinance Institutions with Provisional Licenses, Plans to Cut Number of Microbanks ‘Drastically’ ”
https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-inspecting-microfinance-institutions-with-provisional-licenses-plans-to-cut-number-of-microbanks-“drastically”/
MicroCapital Universe, NDIC
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nigeria+Deposit+Insurance+Corporation+%28NDIC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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