NDIC begins assets takeover of 46 failed microfinance banks, warns public against dealings

The Nigeria Deposit Insurance Corporation (NDIC) has officially taken control of 46 microfinance banks after the Central Bank of Nigeria revoked their operating licenses. The NDIC announced on Wednesday that it has been appointed as the official liquidator for these institutions, a move designed to manage their orderly closure and safeguard depositors' interests.

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Following the revocation of the operating licenses of 46 Microfinance Banks by the Central Bank of Nigeria, on July 1, 2026, the Nigeria Deposit Insurance Corporation has been appointed as the official Liquidator, pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act 2023.

The corporation issued a stern warning to the public, emphasizing that these 46 microfinance banks are no longer authorized to conduct any banking business in Nigeria. "Members of the public are strongly advised against any unauthorized transaction with the closed banks, or any attempt by individuals to remove, conceal, retain, or interfere with the assets, records, or properties of the banks, as this may constitute a violation of the law that could attract appropriate legal consequences," the NDIC stated.

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It is in this capacity that the Corporation wishes to inform the depositors of the banks in particular and the general public in general that the affected institutions are no longer authorised to conduct banking business in Nigeria.

The NDIC has already initiated the liquidation process. This includes taking immediate possession of the banks' premises, verifying claims from depositors, and commencing the payment of insured deposits to eligible customers. The corporation assured that depositors and the general public will receive ongoing updates throughout the liquidation exercise.

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Consequently, members of the public are strongly advised against any unauthorised transaction with the closed banks, or any attempt by individuals to remove, conceal, retain, or interfere with the assets, records, or properties of the banks, as this may constitute a violation of the law that could attract appropriate legal consequences.