NDIC begins payment to customers of 46 closed microfinance banks

The Nigeria Deposit Insurance Corporation (NDIC) has started paying insured deposits to customers of 46 microfinance banks (MfBs) whose licences were revoked by the Central Bank of Nigeria (CBN). NDIC Managing Director and Chief Executive Officer, Thompson Sunday, disclosed this on the sidelines of the International Association of Deposit Insurers (IADI) Africa Regional Committee meeting and workshop.

How payments are being processed

According to Sunday, the corporation has adopted a seamless payment process by leveraging the Nigeria Inter-Bank Settlement System (NIBSS) and depositors’ Bank Verification Numbers (BVNs) to identify their alternative bank accounts and credit them directly. He explained that the approach eliminates the need for most depositors to visit NDIC offices before receiving their insured funds. However, Sunday advised customers who do not have BVNs or whose records cannot be matched electronically to report to the nearest NDIC zonal office for verification and processing of their claims.

Background on the bank closures

Sunday recalled that the CBN revoked the licences of the 46 MfBs on July 1, 2026, adding that the NDIC immediately assumed responsibility as the statutory liquidator of the failed institutions in line with its legal mandate. The CBN had withdrawn the licences after determining that the banks no longer met the regulatory conditions required to continue operations, saying the action was necessary to safeguard depositors, preserve confidence in the financial system and strengthen regulatory compliance.

What depositors can expect

Sunday said the corporation had begun paying the maximum insured deposit of N2 million to eligible customers of the affected banks. He noted that depositors with balances exceeding the insured limit would receive additional payments only after the NDIC recovers assets of the failed banks and realises outstanding loans owed to them. According to him, the proceeds from such recoveries would be distributed to eligible depositors as liquidation dividends.

The NDIC boss cited previous interventions involving Heritage Bank, Aso Savings and Union Homes as evidence of the corporation’s commitment to prompt reimbursement of depositors. He said insured depositors of Heritage Bank received their payments within four days after the bank’s licence was revoked, while customers of Aso Savings and Union Homes were reimbursed within 72 hours. Although the law allows the corporation up to 30 days to settle insured deposits, Sunday said the NDIC was striving to improve on its response time and exceed its previous performance.

For Nigerian depositors, this development means faster access to insured funds without bureaucratic delays, though those with balances above N2 million will have to wait for liquidation dividends. The swift payout process should help maintain confidence in the financial system amid the latest round of bank closures.