Business and Economy
Failed MfBs: NDIC moves to reimburse customers through BVN-linked accounts.
The Nigeria Deposit Insurance Corporation (NDIC) has commenced payment of insured deposits to customers of the 46 recently failed microfinance banks.
The Managing Director and Chief Executive of NDIC, Mr. Thompson Sunday, disclosed this during an interview with the News Agency of Nigeria (NAN) in Abuja on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting.
According to Sunday, NDIC has successfully traced depositors’ alternative bank accounts and credited them directly, eliminating the need for physical visits. He advised customers without BVNs to visit the nearest NDIC zonal office for verification and processing of their payments.
He noted that the Central Bank of Nigeria (CBN) revoked the licences of the 46 microfinance banks on July 1, 2026, after which NDIC automatically assumed the role of provisional liquidator in accordance with the law. He said the corporation has begun paying the maximum insured deposit of N2 million to eligible customers.
Sunday added that additional payments would depend on the recovery of the failed banks’ assets and outstanding debts, with proceeds from such recoveries to be distributed as liquidation dividends to eligible depositors.
He cited the cases of Heritage Bank, Aso Savings and Union Homes as examples of the corporation’s prompt reimbursement efforts, noting that insured depositors of Heritage Bank were paid within four days of the bank’s licence revocation, while customers of Aso Savings and Union Homes received their payments within 72 hours.
“The law allows us 30 days, but we are working to surpass our previous records,” he said.
The CBN revoked the licences of the affected microfinance banks for failing to meet regulatory requirements for continued operations, stating that the action was necessary to protect depositors, strengthen financial stability and ensure compliance with banking regulations.
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