NDIC begins paying depositors of 46 closed microfinance banks, says 700,000 Heritage Bank customers already paid
By Aboki Forex —
The Nigeria Deposit Insurance Corporation has started reimbursing depositors affected by the closure of 46 microfinance banks nationwide. Payments are ongoing, and over 700,000 Heritage Bank customers have already received their insured funds through BVN-linked accounts.
NDIC Managing Director and Chief Executive Oludare Sunday confirmed the development at a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos on Wednesday. He said the reimbursement process will gradually cover all eligible customers of the affected banks.
CBN revoked licences, NDIC appointed liquidator
The closure followed the revocation of the banks' operating licences by the Central Bank of Nigeria. The CBN subsequently appointed the NDIC as provisional liquidator of the failed financial institutions.
Sunday said payments have already begun. "We have started paying depositors of those banks, and gradually we intend to cover all the insured depositors," he said.
Recovering loans and selling assets for uninsured depositors
Beyond paying insured deposits, the NDIC has intensified efforts to recover outstanding loans owed to the failed banks. It is also disposing of their assets and investments.
Sunday said proceeds from these recoveries will be used to settle depositors whose balances exceed the insured limit through liquidation dividends. "Our responsibility does not end with paying the guaranteed deposits. We also recover debts, sell available assets and use the proceeds to pay uninsured depositors," he explained.
BVN helping NDIC locate customers
The NDIC did not disclose the total number of depositors already paid. But Sunday said the Corporation is working closely with the Nigerian Interbank Settlement System (NIBSS) to identify customers using their Bank Verification Numbers.
Payments are made automatically when eligible depositors are traced. More people will receive their money as additional records are verified.
On Heritage Bank, Sunday disclosed that about 700,000 depositors have already received their insured deposits. However, some former customers remain difficult to trace because many accounts were opened before the BVN system was introduced. Others have incomplete or outdated contact information.
He urged anyone who previously held an account with Heritage Bank but has not received payment to come forward for verification. Some records only contained vague addresses, making it impossible to locate customers without their cooperation.
What this means for depositors
The NDIC said more than 98 per cent of depositors, representing over 281 million accounts across insured financial institutions, are fully protected under its deposit insurance scheme. For Nigerian customers of the closed banks, the key step is to ensure their BVN-linked records are accurate and to await verification. Eligible depositors will continue to receive compensation whenever insured banks fail.