We’ve started paying depositors of 46 microfinance banks — NDIC
NDIC Begins Payments to Depositors of Revoked Microfinance Banks
By Cynthia Alo
The Nigeria Deposit Insurance Corporation (NDIC) has initiated payments to depositors of 46 microfinance banks whose licenses were revoked by the Central Bank of Nigeria (CBN) in July 2026.
Thompson Sunday, Managing Director and Chief Executive Officer of NDIC, announced this development during a recent interview at the 2026 stakeholders’ retreat for the House of Representatives Committee on Insurance and Actuarial Matters in Lagos. The retreat focused on “Strengthening Financial Safety Nets in an Era of Banking Sector Recapitalisation and Fintech Innovation.”
Last month, the CBN revoked the licenses of the 46 microfinance banks due to their failure to meet regulatory standards. The banks were found to have insufficient assets to cover liabilities, ceased operations without the required approvals, and in some instances, failed to maintain the necessary minimum capital.
Sunday stated that the NDIC has been appointed as the provisional liquidator after the license revocations and has begun disbursing guaranteed deposits to affected customers. He emphasized that the NDIC aims to cover all insured depositors gradually.
“We have started paying depositors of those banks, and gradually, we intend to cover all the insured depositors,” Sunday said. “Following our role as liquidator, we will pay guaranteed sums, then pursue those who owe the institutions and sell available assets to recover funds for the uninsured portion of the deposits.”
The NDIC is now collaborating with the Nigeria Inter-Bank Settlement System (NIBSS) to streamline payments by automatically identifying alternative accounts linked to depositors’ Bank Verification Numbers (BVNs). Sunday explained that instead of relying on individuals to file for payments, the NDIC can now trace and make payments automatically for registered BVNs.
“This collaboration allows us to continuously process payments for those we identify,” he added.
Sunday noted that the same automated process was implemented during payments to verified depositors of the defunct Heritage Bank, where approximately 700,000 individuals have been reimbursed. He clarified that insured deposits were paid within four days of the bank’s closure, with liquidation dividends to follow for depositors with balances exceeding the insured limit.
He urged depositors from Heritage Bank who have not been traced to come forward with evidence of account ownership and relevant documents for verification. “For the guaranteed sum, there is no need for depositors to physically come forward. However, we still face challenges in tracking some individuals, and this is an opportunity for them to present their claims,” he said.
