NDIC Initiates Verification and Disbursement for Affected Microfinance Banks
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the verification and disbursement of insured deposits to customers of 46 microfinance banks whose licenses were revoked by the Central Bank of Nigeria (CBN). The NDIC reassured depositors that the liquidation process will be carried out efficiently and in an orderly manner.
Official Liquidator Appointment and Legal Framework
Following the revocation of these financial institutions’ licenses on July 1, 2026, the NDIC was designated as the official liquidator in accordance with the provisions outlined in Section 12(2) of the Banks and Other Financial Institutions Act 2020 (BOFIA) and Sections 55(1) and (2) of the NDIC Act 2023.
Immediate Steps for Deposit Verification
In a statement from Hau-Haw Gumbo, the Director-General of Communications and Public Relations at the NDIC, it was announced that the Corporation has taken over the affected banks and is now implementing the necessary verification processes to facilitate the disbursement of insured amounts to eligible customers.
Closure and Public Advisory
The NDIC confirmed that the revoked microfinance banks are no longer permitted to operate in Nigeria. The Corporation emphasized that customers and the public should refrain from conducting any transactions with these institutions.
Legal Protections for Bank Assets
Any attempts to remove, hide, or interfere with the assets, records, or properties of these failed banks are considered legal violations and may incur appropriate sanctions. The NDIC is taking this stance to protect the integrity of the liquidation process.
Goals of the NDIC Intervention
The intervention aims to safeguard depositors according to statutory obligations and to facilitate an organized resolution of the collapsed financial institutions, thereby maintaining trust in Nigeria’s financial system.
Continued Communication with Stakeholders
The NDIC assured depositors and stakeholders that updates regarding the liquidation process, including confirmation of claims and disbursement timelines for insured deposits, will be communicated regularly. The Corporation encourages affected depositors and the general public to stay calm and await forthcoming announcements as the liquidation progresses in compliance with the NDIC Act and applicable laws.
