NDIC begins N2 million payments to depositors of 46 failed microfinance banks
By Aboki Forex —
The Nigeria Deposit Insurance Corporation (NDIC) has started paying insured deposits to customers of the 46 microfinance banks whose licences were revoked by the Central Bank of Nigeria (CBN) on July 1, 2026. Eligible depositors will receive up to N2 million directly through their Bank Verification Numbers (BVNs), with no need to visit a branch in many cases.
Automated payments via BVNs
NDIC Managing Director and Chief Executive, Mr Thompson Sunday, disclosed the development in an interview with the News Agency of Nigeria (NAN) in Abuja. He spoke on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting. Sunday said the corporation has already begun reimbursing eligible customers through an automated process using the Nigeria Inter-Bank Settlement System (NIBSS) and customers’ BVNs.
“The CBN revoked the licences of the 46 microfinance banks on July 1, 2026,” he said. 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 most cases. Under Nigerian law, the NDIC automatically became the provisional liquidator of the failed banks immediately after the revocation.
What depositors 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 said the NDIC is 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 explained. Proceeds realised from the recovery of assets and debts will be distributed as liquidation dividends to eligible depositors whose balances exceeded the N2 million insured limit.
NDIC’s track record on speed
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 CBN revoked the licences
The CBN revoked the licences after the microfinance banks failed to meet regulatory requirements necessary for continued operations. In a statement signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank highlighted various regulatory breaches, including under-capitalisation and prolonged inactivity, as grounds for the revocation. The licences were revoked following approval by CBN Governor Olayemi Cardoso, in accordance with the Banks and Other Financial Institutions Act (BOFIA), 2020.
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.
The swift payment process signals that the NDIC is prioritising depositor confidence. For the naira and the banking system, the action reinforces the message that regulatory compliance is non-negotiable, and that insured deposits remain protected even when banks fail.