NDIC Begins Payment of Depositors of 46 Failed MfBs

The Nigeria Deposit Insurance Corporation (NDIC) has begun paying insured deposits to customers of the 46 recently failed microfinance banks.

The NDIC Managing Director and Chief Executive, Mr Thompson Sunday, disclosed this in an interview with the News Agency of Nigeria (NAN) in Abuja.

The interview took place on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting.

Sunday said the corporation was using the Nigeria Inter-Bank Settlement System and customers’ Bank Verification Numbers (BVNs) for the payments.

He said NDIC had traced depositors’ alternative bank accounts and credited them directly without requiring physical visits.

He advised depositors without BVNs to visit the nearest NDIC zonal office for verification and payment processing.

“The CBN revoked the licences of the 46 microfinance banks on July 1, 2026,” he said.

He said NDIC automatically became the provisional liquidator after the revocation, in line with the law.

Sunday said the corporation had commenced payment of the insured maximum deposit of N2 million to eligible customers.

He explained that further payments would depend on the recovery of the failed banks’ assets and outstanding debts.

He said proceeds realised from recoveries would be distributed as liquidation dividends to eligible depositors.

Sunday cited Heritage Bank, Aso Savings and Union Homes as examples of NDIC’s prompt reimbursement efforts.

He said insured depositors of Heritage Bank were paid within four days of licence revocation.

He added that 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.

The Central Bank of Nigeria (CBN) revoked the banks’ licences for failing to meet regulatory requirements for continued operations.

The apex bank said the action was aimed at protecting depositors, strengthening financial stability and ensuring regulatory compliance. (NAN)