We’ve started paying depositors of 46 microfinance banks, NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has announced the commencement of payments to depositors of 46 microfinance banks. The Central Bank of Nigeria (CBN) revoked the operating licenses of these banks in July 2026 due to failures in meeting regulatory requirements, including inadequate assets, cessation of operations without approval, and insufficient capital.

“

The CBN revoked the licenses, and we became appointed as the provisional liquidator. We have started paying depositors of those banks, and gradually, we intend to cover all the insured depositors.

NDIC, appointed as the provisional liquidator for these institutions, is now actively disbursing guaranteed deposits to affected customers. According to NDIC Managing Director and CEO Thompson Sunday, the corporation's role involves paying the insured sums. Subsequently, NDIC will focus on recovering funds from individuals and entities owing money to the defunct banks and liquidating available assets to cover the uninsured portions of deposits.

In a significant move to streamline the payment process, NDIC is collaborating with the Nigeria Inter-Bank Settlement System (NIBSS). This partnership aims to identify and automatically pay depositors through alternative accounts linked to their Bank Verification Numbers (BVNs). Previously, depositors had to actively file claims for payment.

“

Our function as liquidator would involve payment of guaranteed sums. Thereafter, what we do is we go after those who are owing the institutions and have not paid. We also make sure that we sell the assets that are available and also realise their investment towards paying the uninsured portion of the deposit.

Sunday highlighted that this automated payment system has already been successfully implemented in the case of the defunct Heritage Bank. Approximately 700,000 depositors of Heritage Bank have been reimbursed through this method. Insured deposits were reportedly paid within four days of the bank's failure, with liquidation dividends subsequently declared for balances exceeding the insured limit.

“

Hitherto, we used to depend on people to come file for payment, but now, in collaboration with the Nigeria Inter-Bank Settlement System, what we do is, for every account that has a BVN, we trace your alternative account in other institutions and make payments to you automatically.

However, NDIC acknowledges that some Heritage Bank depositors remain untraceable through existing databases. These individuals are urged to come forward with proof of account ownership and other necessary documentation to facilitate their claims.

“

So, the more we discover those, the more we start payment.