NDIC Begins Paying Depositors of 46 Failed Microfinance Banks, Urges Customers to Claim Funds

• NDIC begins paying insured deposits to customers of 46 revoked microfinance banks
• Eligible depositors receive maximum insured amount of N2 million directly via BVNs
• CBN revoked licenses to protect depositors and ensure banking stability amid regulatory non-compliance

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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

The Nigeria Deposit Insurance Corporation (NDIC) has commenced payment of insured deposits to customers of the 46 microfinance banks whose operating licences were recently revoked by the Central Bank of Nigeria (CBN).

The NDIC Managing Director and Chief Executive, Mr Thompson Sunday, disclosed this in an interview with the News Agency of Nigeria (NAN) in Abuja on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting.

He assured depositors that the corporation had already begun reimbursing eligible customers through an automated payment process using the Nigeria Inter-Bank Settlement System (NIBSS) and customers’ Bank Verification Numbers (BVNs).

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Depositors credited directly

According to Sunday, the NDIC has traced depositors’ alternative bank accounts linked to their BVNs and credited them directly, eliminating the need for physical visits in many cases.

“The CBN revoked the licences of the 46 microfinance banks on July 1, 2026,” he said.

He explained that under Nigerian law, the NDIC automatically became the provisional liquidator of the failed banks immediately after the revocation.

The corporation has since commenced payment of the maximum insured deposit of N2 million to eligible customers of the affected institutions.

What customers without BVNs should do

Sunday advised depositors who do not have BVNs or whose accounts could not be traced electronically to visit the nearest NDIC zonal office for verification and payment processing.

He noted that the NDIC was committed to ensuring that all eligible depositors receive their insured funds as quickly as possible.

“Further payments beyond the insured amount will depend on the recovery of the failed banks’ assets and outstanding debts,” he said.

He explained that proceeds realised from the recovery of assets and debts would be distributed as liquidation dividends to eligible depositors whose balances exceeded the N2 million insured limit.

NDIC promises faster payouts

Sunday cited the NDIC’s recent reimbursement efforts involving Heritage Bank, Aso Savings and Union Homes as evidence of the corporation’s commitment to prompt payment.

He said insured depositors of Heritage Bank were reimbursed within four days of the revocation of its licence, while customers of Aso Savings and Union Homes received payments within 72 hours.

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

Why the banks were closed

The CBN revoked the licences of the 46 microfinance banks after they failed to meet regulatory requirements necessary for continued operations.

According to the apex bank, the action was taken to protect depositors, strengthen financial stability and ensure compliance with banking regulations.

The NDIC urged affected customers to verify their payment status and cooperate with the corporation during the verification process to facilitate the prompt release of their insured deposits.

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Reasons CBN revoked licenses of 46 Nigerian Banks

Legit.ng earlier reported that the CBN has clarified the reasons behind its decision to revoke the operating licenses of 46 microfinance banks.

The apex bank, in a statement signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali and released on Wednesday, July 1, highlighted various regulatory breaches, including under-capitalisation and prolonged inactivity, as grounds for the revocation.

The CBN stated that the licenses of these microfinance banks were revoked on July 1, 2026, following approval by its Governor, Olayemi Cardoso, in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA), 2020.