The Nigeria Deposit Insurance Corporation (NDIC) has initiated payments to customers of 46 microfinance institutions that had their licenses withdrawn by the Central Bank of Nigeria in July 2026. Thompson Sunday, the NDIC Managing Director, confirmed this update during a stakeholder meeting in Lagos focused on financial stability and regulatory oversight.
The Central Bank terminated these licenses after the institutions failed to maintain sufficient capital, stopped operations, or neglected to meet essential regulatory standards. Acting as the provisional liquidator, the NDIC is now processing guaranteed deposit payouts. The agency plans to settle these obligations by recovering debts owed to the failed banks and disposing of their remaining assets.
To expedite the process, the NDIC is leveraging the Nigeria Inter-Bank Settlement System to link payments directly to customer Bank Verification Numbers. This automated approach, which avoids the need for manual claims, was successfully deployed for the defunct Heritage Bank, where roughly 700,000 customers have already received funds. While the corporation aims to pay all verified insured deposits, Sunday noted that some individuals with missing account data must still submit formal documentation for verification.
