Allied Bank and 19 Other Banks Face Liquidation as CBN Implements Stringent Measures

The Central Bank of Nigeria (CBN) has initiated stringent measures, leading to the revocation of licenses for Allied Bank and 19 other financial institutions.

The Nigeria Deposit Insurance Corporation (NDIC) has promptly responded by disbursing N1.39 billion to 36,163 depositors affected by the closure of 110 microfinance banks and three primary mortgage banks.

Bello Hassan, the CEO of NDIC, revealed that the rapid liquidation process began within three days of the banks’ closure, emphasizing the corporation’s commitment to delivering efficient and timely solutions to financial challenges.

The payments of statutory insured sums to affected depositors are ongoing.

Hassan also disclosed that depositors with funds surpassing the insured limit would be eligible for liquidation dividends after the recovery of debts and the sale of the closed banks’ physical assets.

The NDIC’s ‘Special Day’ at the 2023 Lagos International Trade Fair served as a platform to communicate these developments.

While acknowledging the corporation’s efforts to boost depositors’ confidence in the financial landscape, Hassan urged the public, particularly traders and businesspeople, to maintain accounts with licensed banks and steer clear of wonder banks and Ponzi schemes.

As the NDIC navigates the complexities of bank closures, its commitment to addressing genuine infractions and complaints reinforces its role as a guardian of financial stability in Nigeria.