NDIC Begins Payouts to Depositors of 46 Failed Microfinance Banks

The Nigeria Deposit Insurance Corporation (NDIC) has commenced payments to customers of 46 recently closed microfinance banks, following the revocation of their licences by the Central Bank of Nigeria (CBN) on July 1, 2026.

NDIC Managing Director, Thompson Sunday, confirmed the development during the Africa Regional Committee meeting of the International Association of Deposit Insurers in Abuja.

He explained that the corporation is leveraging the Nigeria Inter-Bank Settlement System (NIBSS) and depositors’ Bank Verification Numbers (BVNs) to trace alternative accounts and credit customers directly, eliminating the need for physical visits.

For depositors without BVNs, Sunday advised visiting the nearest NDIC zonal office for verification and payment processing.

He noted that the corporation has begun disbursing the insured maximum deposit of ₦2 million to eligible customers, while further payments will depend on asset recoveries from the failed banks.

“The law allows us 30 days, but we are working to surpass our previous records,” Sunday said, citing past examples where NDIC reimbursed depositors of Heritage Bank, Aso Savings, and Union Homes within days of licence revocation.

The CBN explained that the closure of the banks was necessary to protect depositors, strengthen financial stability, and enforce regulatory compliance.

NDIC, now acting as provisional liquidator, will distribute liquidation dividends from recovered assets to depositors as the process continues.

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