NDIC payments to depositors begin as customers of 46 failed microfinance banks receive insured refunds of up to N2 million

The Nigeria Deposit Insurance Corporation (NDIC) has started paying insured deposits to customers of 46 failed microfinance banks following the revocation of their operating licences by the Central Bank of Nigeria (CBN).

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NDIC Managing Director and Chief Executive Officer Thompson Sunday disclosed the development in an interview with the News Agency of Nigeria (NAN) in Abuja, explaining that the corporation had activated its reimbursement process to protect affected depositors.

NDIC payments to depositors are being processed through the Nigeria Inter-Bank Settlement System (NIBSS), using customers’ Bank Verification Numbers (BVNs) to identify and credit eligible account holders.

Sunday said the corporation had traced alternative bank accounts linked to depositors and transferred funds directly without requiring customers to visit NDIC offices.

“We have traced depositors’ alternative bank accounts and credited them directly without requiring physical visits,” he said.

However, depositors without BVNs were advised to visit the nearest NDIC zonal office for verification and payment processing.

The NDIC chief executive said the CBN revoked the licences of the 46 microfinance banks on July 1, 2026, after they failed to meet regulatory requirements needed to continue operations.

Following the revocation, the NDIC automatically became the provisional liquidator of the affected institutions in accordance with existing laws.

Sunday confirmed that eligible customers would receive the insured maximum deposit of N2 million, while additional payments would depend on recoveries from the failed banks’ assets and outstanding obligations.

He explained that funds recovered during the liquidation process would later be distributed as liquidation dividends to eligible depositors.

The NDIC boss pointed to previous interventions involving banks such as Heritage Bank, Aso Savings and Union Homes, saying the corporation had demonstrated its ability to process refunds quickly after licence revocations.

He noted that insured depositors of Heritage Bank received payments within four days of its licence withdrawal, 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 said.

The CBN said the decision to withdraw the licences of the microfinance banks was aimed at protecting depositors, improving confidence in the financial system and ensuring compliance with banking regulations.

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The latest action forms part of Nigeria’s deposit protection framework, which allows NDIC to reimburse insured customers while managing the liquidation process of failed financial institutions.