NDIC begins payment to depositors of 46 failed microfinance banks

The Nigeria Deposit Insurance Corporation (NDIC) has initiated the process of reimbursing depositors whose funds were held in 46 recently defunct microfinance banks. This action follows the Central Bank of Nigeria's revocation of these banks' licenses on July 1, 2026, due to failures in meeting regulatory requirements.

NDIC Managing Director Thompson Sunday announced that the corporation is leveraging the Nigeria Inter-Bank Settlement System and customers' Bank Verification Numbers (BVNs) to facilitate direct payments. Depositors are having their insured maximum deposit of N2 million credited to their alternative bank accounts, eliminating the need for physical visits. However, customers without BVNs are advised to proceed to the nearest NDIC zonal office for verification and payment processing.

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The CBN revoked the licences of the 46 microfinance banks on July 1, 2026.

Sunday explained that after the Central Bank of Nigeria revoked the licenses, the NDIC automatically assumed the role of provisional liquidator, as mandated by law. The corporation is working to expedite payments, aiming to surpass previous records, although the law allows for up to 30 days. The NDIC highlighted its prompt reimbursement efforts in past cases, such as Heritage Bank, Aso Savings, and Union Homes, where payments were made within four days or 72 hours of license revocation.

Further disbursements to depositors will be contingent upon the successful recovery of assets and outstanding debts from the failed microfinance banks. Proceeds generated from these asset recoveries will be distributed as liquidation dividends to eligible depositors. The NDIC's actions are part of a broader effort to protect depositors, maintain financial stability, and ensure regulatory compliance within Nigeria's banking sector.

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The law allows us 30 days, but we are working to surpass our previous records.