Seven Firms Bid For Taraba Microfinance Bank Assets
Staff of the Taraba State Microfinance Bank have appealed to the state government to stop the ongoing auction of the bank's assets by the Nigeria Deposit Insurance Corporation (NDIC) and instead revive the institution, which they say once played a vital role in supporting local businesses and livelihoods.
Taraba Truth and Facts gathered that at least seven companies have already expressed interest in assets of the defunct bank as NDIC proceeds with the auction of landed property belonging to 37 liquidated microfinance banks nationwide. The assets include furniture, fixtures, office equipment, generators and vehicles — all being sold through public competitive bidding. Two of the bidding firms are owned by a prominent political figure in the state.
The bank's Business Development Manager, Mr. AbdulrahmanMahmoud Suleiman, in an interview, said the bank's closure has crippled financial activities, thrown workers into hardship, and harmed thousands of small and medium enterprises (SMEs) that depended on its services.
"Someone who was barely surviving on little income is now left with nothing. Many cooperative staff have now become corporate beggars," he lamented.
Suleiman traced the bank's crisis to the suspension of its former Managing Director, Mallam Nasuru Baba, in 2016 — a move which led to litigation and eventually shut down the bank's operations.
He said the closure has had severe consequences particularly in rural communities where financial institutions are nonexistent, leaving traders and farmers stranded.
"Some communities have no banks at all. Business people now face serious challenges in carrying out transactions," he noted.
He further revealed that despite an earlier commitment by the state government to NDIC to revive the bank, auction processes are now underway.
"The state government has already promised NDIC that the bank will be revived, so there is no need to auction the place. NDIC is waiting. If government fulfills its obligation, as directed by the Central Bank, the bank can be restored," he said.
Suleiman and other affected staff are urging Governor AgbuKefas to immediately halt the auction and revive the once-thriving financial institution, which they insist is vital to the survival of rural businesses, financial inclusion, and the state's economy.
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