NDIC begins payment to depositors of 46 defunct microfinance banks

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the payment of insured deposits to customers of the 46 microfinance banks whose operating licences were recently revoked by the Central Bank of Nigeria (CBN).

Speaking on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting in Abuja on Wednesday, the Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, said the reimbursement exercise was already underway.

He explained that the corporation was using the Nigeria Inter-Bank Settlement System (NIBSS) and customers’ Bank Verification Numbers (BVNs) to credit eligible depositors directly into their alternative bank accounts, eliminating the need for them to visit NDIC offices.

Sunday, however, advised depositors without BVNs to visit the nearest NDIC zonal office to complete the verification process and receive their payments.

He recalled that the CBN revoked the operating licences of the 46 microfinance banks on July 1, 2026, following which the NDIC assumed its statutory role as provisional liquidator.

According to him, the corporation has begun paying the maximum insured deposit of N2 million to eligible customers.

He explained that payments beyond the insured limit would depend on the recovery of the failed banks’ assets and outstanding debts, adding that proceeds from such recoveries would be paid to eligible depositors as liquidation dividends.

Sunday cited the corporation’s handling of the failures of Heritage Bank, Aso Savings and Union Homes as examples of its commitment to prompt reimbursement of depositors.

He noted that insured depositors of Heritage Bank received their payments within four days of the revocation of the bank’s licence.

Although the NDIC Act provides a 30-day timeline for the payment of insured deposits, Sunday said the corporation remained committed to completing reimbursements much earlier than the statutory deadline.

The CBN had revoked the licences of the 46 microfinance banks after determining that they no longer met the regulatory requirements for continued operations. The apex bank said the action was taken to protect depositors’ funds, strengthen the stability of the financial system and ensure compliance with banking regulations.