Nigeria Deposit Insurance Corporation Continues Payments for Revoked Microfinance Banks

Depositors of 46 microfinance banks (MFBs) whose licenses were revoked by the Central Bank of Nigeria (CBN) are being protected, with payments of their guaranteed deposits currently underway, according to the Nigeria Deposit Insurance Corporation (NDIC).

Mr. Thompson Oludare, the Managing Director/Chief Executive Officer of NDIC, assured that the corporation is actively processing payments for eligible depositors of the 46 MFBs, whose licenses were revoked on July 1, 2026. While a final figure for the number of depositors paid is not yet available, Oludare noted that the process is ongoing as new beneficiaries are continuously identified and processed.

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As we speak, we have started paying the depositors. That’s the guaranteed portion of their deposits. It’s an ongoing process, and it is difficult to put numbers because even as I speak with you today, Friday, I’m sure new depositors are being paid.

Speaking at a three-day workshop for NDIC senior management, Oludare explained that the corporation is leveraging Bank Verification Numbers (BVNs) in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS). This partnership allows NDIC to identify affected depositors and locate their alternative accounts in other banks for seamless direct payment, eliminating the need for depositors to physically visit the corporation for verification.

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All we need to do is to make sure that the accounts that have BVNs, that’s the Bank Verification Number identified, and in collaboration with the NIBSS, Nigeria Inter-Bank Settlement System, we identify their alternative accounts in other banks and pay them seamlessly without their having to come to us for verification.

"All we need to do is to make sure that the accounts that have BVNs, that’s the Bank Verification Number identified, and in collaboration with the NIBSS, Nigeria Inter-Bank Settlement System, we identify their alternative accounts in other banks and pay them seamlessly without their having to come to us for verification," Oludare stated.

This ongoing exercise is a core part of the NDIC's mandate to safeguard depositors and uphold confidence in the nation's financial system. Oludare acknowledged that while financial institution failures are undesirable, they are a reality. The deposit insurance system's objective is to ensure that customers remain protected when such failures occur, reinforcing the safety and guarantee of their deposits.

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Our expectation is that you have a country where deposit insurance is pervasive, where people know that their deposits with the banks are guaranteed and safe.