The Nigeria Deposit Insurance Corporation (NDIC) has begun the payment of insured deposits to customers of the 46 microfinance banks whose operating licences were recently revoked by the Central Bank of Nigeria (CBN).
In a statement issued on Wednesday by the Head of Communication and Public Affairs, Hawwau Gambo, the corporation announced that it has officially assumed the role of liquidator for the affected banks following the CBN’s decision, which took effect on July 1.
According to the NDIC, its appointment is in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023.
The corporation explained that the affected institutions have ceased to operate as licensed financial institutions and are no longer permitted to carry out banking activities in Nigeria.
It stated that it has commenced the orderly closure of the failed banks by taking over their operations, verifying depositors’ records and paying insured deposits to eligible customers.
The NDIC assured depositors and the public that additional information regarding the liquidation process would be communicated as the exercise progresses.
The corporation also warned the public against conducting any financial transactions with the affected banks, stressing that their licences have been withdrawn.
It further cautioned against removing, hiding or tampering with the assets, records or properties of the failed institutions, noting that such actions violate the law and may attract legal penalties.
The CBN had earlier revoked the licences of the 46 microfinance banks after determining that they no longer satisfied the regulatory requirements needed to continue operations.
According to the apex bank, the affected institutions were found to have committed various regulatory violations, including having insufficient assets to cover liabilities, operating without proper approval, remaining inactive for extended periods, failing to commence business within the required timeframe and not maintaining the statutory minimum capital.
The CBN said the move is part of ongoing efforts to strengthen the stability of Nigeria’s financial system, safeguard depositors’ funds and improve compliance with banking regulations.
The affected banks are located across several states, including Lagos, Kano, Abia, Kaduna, Kebbi, Ogun, Niger, Plateau, Rivers, Delta, Benue, Cross River, Ondo, Osun, Anambra, Oyo, Bayelsa, the Federal Capital Territory and Akwa Ibom.
The NDIC urged customers of the affected banks to cooperate with the verification process to ensure the prompt payment of insured deposits and other legitimate claims arising from the liquidation exercise.
