The Nigeria Deposit Insurance Corporation (NDIC) has commenced payment of insured deposits to customers of the 46 microfinance banks whose licences were recently revoked by the Central Bank of Nigeria (CBN).
NDIC Managing Director and Chief Executive Officer, Mr Thompson Sunday, disclosed this during an interview with the News Agency of Nigeria on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting in Abuja.
Sunday said the corporation is using the Nigeria Inter-Bank Settlement System and customers’ Bank Verification Numbers (BVNs) to facilitate payments directly into alternative bank accounts linked to affected depositors.
According to him, the approach eliminates the need for most customers to physically visit NDIC offices before receiving their funds.
He advised depositors who do not have BVNs to visit the nearest NDIC zonal office for verification and processing of their claims.
“The CBN revoked the licences of the 46 microfinance banks on July 1, 2026,” he said, adding that NDIC automatically became the provisional liquidator following the revocation, in accordance with the law.
Sunday explained that the corporation has commenced payment of the maximum insured deposit of N2 million to eligible customers of the failed institutions.
He noted that additional payments would depend on the successful recovery and disposal of the failed banks’ assets and outstanding debts.
According to him, proceeds realised from asset recoveries will be distributed to eligible depositors as liquidation dividends.
The NDIC boss cited previous interventions involving Heritage Bank, Aso Savings and Union Homes as examples of the corporation’s commitment to prompt reimbursement.
He disclosed that insured depositors of Heritage Bank received payments within four days of licence revocation, while customers of Aso Savings and Union Homes were paid within 72 hours.
“The law allows us 30 days, but we are working to surpass our previous records,” Sunday stated.
The Central Bank of Nigeria had revoked the licences of the affected microfinance banks for failing to meet regulatory requirements necessary for continued operation.
The apex bank said the action was intended to protect depositors, strengthen financial system stability and ensure compliance with banking regulations.
Financial analysts say the prompt commencement of payments by NDIC will help boost public confidence in the financial system and reassure depositors about the safety of insured funds.
