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).
Managing Director and Chief Executive Officer of the NDIC, Mr. Thompson Sunday, disclosed this in an interview with the News Agency of Nigeria (NAN) on the sidelines of the International Association of Deposit Insurers (IADI) Africa Regional Committee meeting in Abuja.
According to him, the corporation has adopted an automated payment process using the Nigeria Inter-Bank Settlement System (NIBSS) and customers’ Bank Verification Numbers (BVNs) to facilitate seamless reimbursement.
Sunday explained that the NDIC had successfully traced depositors’ alternative bank accounts and credited them directly, eliminating the need for physical visits to its offices by most affected customers.
He, however, advised depositors who do not have BVNs or whose accounts could not be traced through the electronic platform to visit the nearest NDIC zonal office for verification and payment processing.
“The CBN revoked the licences of the 46 microfinance banks on July 1, 2026, and by law, the NDIC automatically became the provisional liquidator of the affected institutions,” he said.
The NDIC boss stated that the corporation had already begun paying the maximum insured deposit of N2 million to eligible depositors, noting that customers with balances above the insured limit would receive additional payments as assets of the failed banks are recovered and outstanding debts collected.
He explained that proceeds realised from the disposal of assets and debt recoveries would be distributed to eligible depositors as liquidation dividends until all available funds are exhausted.
Sunday said the corporation’s recent interventions in failed financial institutions demonstrate its commitment to prompt depositor reimbursement and financial system stability.
He cited the cases of Heritage Bank, Aso Savings and Loans Plc, and Union Homes Savings and Loans Plc, where depositors received payments within days of the revocation of the institutions’ licences.
According to him, insured depositors of Heritage Bank were reimbursed within four days, while customers of Aso Savings and Union Homes received payments within 72 hours.
“The law allows us 30 days to make payments, but we are working to surpass our previous records and ensure depositors regain access to their funds as quickly as possible,” Sunday said.
The development follows the revocation of the licences of the 46 microfinance banks by the Central Bank of Nigeria over their inability to meet regulatory requirements necessary for continued operations.
The apex bank said the action was taken to protect depositors, strengthen confidence in the financial system, enhance financial stability and ensure compliance with banking regulations.
Industry analysts say the prompt reimbursement of depositors is critical to maintaining public confidence in the banking sector and reducing the impact of bank failures on small businesses and low-income customers who rely heavily on microfinance institutions for financial services.
