Key points
- The NDIC has begun paying insured deposits to customers of 46 recently closed microfinance banks.
- Payments are being made directly into customers’ alternative bank accounts using BVNs and the Nigeria Inter-Bank Settlement System.
- Eligible depositors are entitled to insured deposits of up to N2 million.
- The corporation says additional payments will depend on the recovery of the failed banks’ assets.
Main story
The Nigeria Deposit Insurance Corporation (NDIC) says it has commenced payment of 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) on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting in Abuja.
Sunday said the corporation was using the Nigeria Inter-Bank Settlement System (NIBSS) and customers’ Bank Verification Numbers (BVNs) to process the payments.
He explained that NDIC had traced depositors’ alternative bank accounts and credited them directly without requiring beneficiaries to visit its offices.
He advised depositors without BVNs to visit the nearest NDIC zonal office for verification and payment processing.
According to him, the Central Bank of Nigeria (CBN) revoked the licences of the 46 microfinance banks on July 1, 2026, after which NDIC became the provisional liquidator in accordance with the law.
Sunday said the corporation had commenced payment of the maximum insured deposit of N2 million to eligible customers.
He explained that any further payments would depend on the recovery of the failed banks’ assets and outstanding debts.
According to him, proceeds realised from asset recoveries would be distributed to eligible depositors as liquidation dividends.
He cited Heritage Bank, Aso Savings and Union Homes as examples of the corporation’s prompt reimbursement efforts.
Sunday said insured depositors of Heritage Bank received payments within four days of the bank’s licence revocation, while customers of Aso Savings and Union Homes were paid 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 revoked the licences of the affected microfinance banks 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.
The issues
Deposit insurance is designed to protect bank customers when licensed financial institutions fail, helping to maintain confidence in the financial system while liquidation and asset recovery processes continue.
What’s being said
“The law allows us 30 days, but we are working to surpass our previous records.” — Mr Thompson Sunday, Managing Director and Chief Executive, NDIC
What’s next
NDIC will continue processing insured deposit payments, while pursuing the recovery of the failed banks’ assets to pay additional liquidation dividends to eligible depositors.
Bottom line
The commencement of payments to customers of the failed microfinance banks reflects NDIC’s efforts to protect depositors and maintain confidence in Nigeria’s financial system following the banks’ closure.
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