The Nigeria Deposit Insurance Corporation has started verifying and paying insured deposits to customers of 46 microfinance banks whose licences the Central Bank of Nigeria revoked. The deposit insurer promised that the closure process would proceed smoothly and in an orderly fashion.
The CBN pulled the operating licences on July 1, 2026, following provisions in Section 12(2) of the Banks and Other Financial Institutions Act 2020 and sections 55(1) and (2) of the NDIC Act 2023. The NDIC was named official liquidator of these failed institutions.
Hawwau Gambo, head of the NDIC's Communication and Public Affairs Department, said the corporation had taken control of the affected banks immediately. "The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors," the statement read.
The failed microfinance banks can no longer conduct any banking operations in Nigeria following the licence revocations. The NDIC warned the public and customers against carrying out any transactions with these closed institutions.
Anyone who attempts to remove, hide, keep or tamper with the assets, records or other property of the defunct banks violates the law and risks legal punishment, according to the corporation. Such interference is treated as a serious breach of financial regulations.
The NDIC said its move aims to shield depositors and manage the collapse of these banks in line with its legal duties. The intervention is meant to maintain trust in Nigeria's financial system during this process.
Depositors and stakeholders will get regular updates on the liquidation exercise, including how to verify claims and receive their insured deposits, the corporation assured. It urged those affected to stay calm and wait for further announcements as the liquidation continues under the NDIC Act and related laws.
