The Nigeria Deposit Insurance Corporation (NDIC) has commenced the reimbursement of customers affected by the recent closure of 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN). The move is aimed at protecting depositors and reinforcing confidence in Nigeria’s financial system following the banks’ failure to meet regulatory requirements. The announcement was made by the NDIC Managing Director and Chief Executive Officer, Mr. Thompson Sunday, during the 2026 Stakeholders’ Retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.
According to Sunday, the NDIC assumed the role of provisional liquidator immediately after the CBN withdrew the licences of the affected institutions in July 2026. He explained that the corporation has already started paying insured depositors and intends to ensure that every eligible customer receives compensation. The affected microfinance banks lost their licences due to issues such as inadequate capital, inability to meet financial obligations, failure to commence operations within the required period, and ceasing business without regulatory approval.
To speed up the reimbursement process, the NDIC has partnered with the Nigeria Inter-Bank Settlement System (NIBSS) to identify alternative bank accounts linked to customers’ Bank Verification Numbers (BVNs). This technology-driven approach allows the corporation to transfer insured deposits directly into customers’ existing accounts without requiring them to file payment claims. Sunday noted that the initiative has significantly improved the speed and efficiency of compensating affected depositors.
The same payment system has already proven successful in handling claims from the defunct Heritage Bank. According to the NDIC boss, more than 700,000 Heritage Bank depositors have already received their insured deposits, with payments beginning within four days after the bank’s closure. He added that customers with balances exceeding the insured limit are also receiving liquidation dividends as the corporation recovers funds through the sale of bank assets and the collection of outstanding loans owed to the failed institutions.
Despite the progress, the NDIC acknowledged that some depositors have not yet been located due to incomplete or unavailable account information. The corporation has urged affected Heritage Bank customers who have not received payment to come forward with proof of account ownership and other necessary documents for verification. With automated payment systems and ongoing asset recovery efforts, the NDIC says it remains committed to ensuring that all eligible depositors receive both their insured funds and, where applicable, additional liquidation payments.
source: vanguard
