The Nigeria Deposit Insurance Corporation (NDIC) has initiated the payment process for depositors of 46 microfinance banks whose licenses were recently withdrawn by the Central Bank of Nigeria (CBN). This announcement was made by Thompson Sunday, the Managing Director and CEO of the NDIC, during a stakeholders’ retreat in Lagos.
The CBN revoked these licenses in July due to the institutions’ inability to adhere to regulatory standards, which included issues like insufficient capital, failure to conduct business, and inability to manage liabilities. As the appointed provisional liquidator, the NDIC is responsible for settling insured deposits and liquidating assets to cover remaining balances.
To streamline the payout process, the NDIC is partnering with the Nigeria Inter-Bank Settlement System (NIBSS). By leveraging Bank Verification Numbers (BVNs), the agency can now identify and credit alternative accounts automatically, reducing the need for customers to file manual claims. A similar method has already facilitated payments to roughly 700,000 customers of the failed Heritage Bank.
The agency is also actively working to recover outstanding debts and sell assets from these failed entities to provide further compensation for depositors whose balances exceed the standard insured limit. While over 98 percent of accounts across the nation are fully covered by the insurance scheme, the NDIC encourages any individuals who have not yet been traced to step forward with their account documentation for verification.
