The Nigeria Deposit Insurance Corporation (NDIC) has commenced the settlement of insured deposit claims for customers of the 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN), deploying electronic payment channels to accelerate reimbursements.
Managing Director and Chief Executive of the NDIC, Mr. Thompson Sunday, disclosed this on the sidelines of the International Association of Deposit Insurers (IADI) Africa Regional Committee meeting in Abuja.
He said the corporation had activated the statutory compensation process for eligible depositors and adopted an electronic payment system to ensure customers receive their insured deposits promptly without having to visit NDIC offices.
According to him, the corporation is leveraging the Nigeria Inter-Bank Settlement System (NIBSS) and depositors’ Bank Verification Numbers (BVNs) to identify alternative bank accounts into which insured funds are being paid.
Sunday explained that depositors whose BVNs are unavailable or whose account details could not be verified electronically would still receive their payments after completing the required verification process at the corporation’s zonal offices.
“The CBN revoked the licences of the 46 microfinance banks on July 1, 2026,” he said.
He noted that immediately after the revocation, the NDIC assumed responsibility for winding up the affected institutions in its capacity as provisional liquidator.
Sunday said the corporation had begun paying the maximum insured deposit of ₦2m to every eligible depositor, describing the exercise as the first phase of the liquidation process.
He assured customers with deposits above the insured threshold that they would receive additional payments once the corporation concludes the recovery and disposal of the failed banks’ assets and outstanding loans.
According to him, proceeds realised from the sale of assets and loan recoveries would be distributed as liquidation dividends to depositors based on the outstanding balances after insured deposits have been settled.
Highlighting the NDIC’s commitment to prompt compensation, Sunday recalled that depositors of Heritage Bank received their insured funds within four days of the revocation of the bank’s licence, 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.
He said the corporation remains committed to strengthening public confidence in Nigeria’s financial system by ensuring eligible depositors are reimbursed swiftly whenever a licensed financial institution fails.
Sunday also urged customers of the affected microfinance banks who have not received payment because they lack a BVN or whose records could not be matched electronically to visit the nearest NDIC zonal office for verification and processing of their claims.
The reimbursement exercise follows the CBN’s decision on July 1 to revoke the operating licences of 46 microfinance banks after determining that the institutions no longer met the regulatory requirements for continued operation.
The apex bank said the action was aimed at protecting depositors, promoting confidence in the financial system and strengthening compliance with prudential regulations.
The NDIC reiterated that it would continue recovering assets and outstanding loans of the failed banks to maximise liquidation dividends for depositors with balances exceeding the insured limit, while assuring affected customers that all eligible claims would be processed in accordance with the provisions of the NDIC Act.
(The Whistler)
