The Nigeria Deposit Insurance Corporation (NDIC) has commenced the payment of insured deposits to customers of 46 microfinance banks (MFBs) whose operating licences were recently revoked by the Central Bank of Nigeria (CBN). The move is part of the corporation’s statutory responsibility to protect depositors and ensure confidence in Nigeria’s financial system.

According to the NDIC, eligible depositors are receiving their insured deposits through an automated payment process linked to their Bank Verification Numbers (BVNs) and alternative bank accounts. The corporation explained that this approach is intended to speed up reimbursements and reduce the need for customers to visit its offices physically.

The corporation also disclosed that it has intensified efforts to recover outstanding loans and dispose of the assets of the failed institutions. These recoveries are expected to fund additional payments to depositors whose account balances exceeded the maximum insured limit provided under the NDIC Act.

The 46 microfinance banks lost their licences after the CBN determined that they no longer met the regulatory requirements for continued operation. Following the revocation, the NDIC automatically assumed the role of liquidator, taking responsibility for closing the institutions, verifying claims, reimbursing depositors, and managing the liquidation process in accordance with the law.

The NDIC urged affected customers to cooperate during the claims process and ensure that their banking information is accurate to facilitate prompt payment. It also warned members of the public against carrying out transactions with the affected institutions or interfering with their records and assets, noting that such actions could attract legal sanctions.

Financial analysts said the prompt settlement of insured deposits is critical to maintaining confidence in Nigeria’s banking system, particularly within the microfinance sector, which provides financial services to millions of small businesses, traders, and low-income households. They noted that an effective deposit insurance system helps protect savers while reinforcing financial stability.

Stakeholders also believe that the orderly liquidation of failed financial institutions demonstrates the effectiveness of Nigeria’s financial safety framework. They stressed that strong regulatory oversight, prudent risk management, and prompt depositor protection remain essential to safeguarding public trust and ensuring the resilience of the country’s banking sector.

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The Nigeria Deposit Insurance Corporation (NDIC) has assured depositors of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc that they will receive insured deposits of up to N2 million per depositor.

The assurance followed the revocation of the operating licences of the two mortgage banks by the Central Bank of Nigeria (CBN).

In a statement issued on Tuesday, the NDIC said it had commenced the liquidation process for the affected institutions in line with the provisions of the NDIC Act 2023.

Earlier, the CBN announced the withdrawal of the licences as part of efforts to reposition the mortgage banking subsector and strengthen regulatory compliance.

According to the apex bank, the action was taken under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.

The CBN cited several regulatory breaches by the banks, including failure to meet minimum paid-up share capital requirements, insufficient assets to cover liabilities, critical undercapitalisation, and non-compliance with regulatory directives.

Deposit Payment Process

The NDIC said depositors would be paid insured sums of up to N2 million, using their Bank Verification Number (BVN) to locate alternate bank accounts into which the funds would be credited.

Depositors with balances exceeding N2 million will receive the insured portion immediately, while the remaining balances will be paid later as liquidation dividends after asset sales and loan recoveries.

To facilitate this, the Corporation said it would begin the sale of the banks’ assets and intensify debt recovery efforts.

Claims and Verification

Depositors have been advised to submit claims through the NDIC online claims portal by completing a digital verification form.

Those who prefer physical verification can visit the nearest branches of the closed banks between December 16 and December 30, 2025, where NDIC officials will be available.

Required documents include proof of account ownership, a valid means of identification, BVN details, and information on an alternate bank account.

Creditors, Staff, and Shareholders

Creditors of the failed banks were also advised to submit claims within the verification period. Payment of liquidation dividends to creditors will begin after all depositors have been fully settled.

The NDIC added that staff of the defunct banks would be paid after depositors, while shareholders would receive payments only after further asset realisation and debt recovery.

Debtors of the closed banks were advised to contact the NDIC’s Asset Management Department to settle outstanding loan obligations.

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