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 Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country over their failure to meet key regulatory requirements for continued operation.

The apex bank announced the decision in a statement issued by its Acting Director of Corporate Communications, Sidi-Ali Hakama, stating that the revocation took effect from July 1, 2026.

According to the CBN, the action was approved by Governor Olayemi Cardoso in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The regulator explained that the affected institutions failed to satisfy critical conditions required of licensed financial institutions, prompting the withdrawal of their licences.

The CBN said the affected banks were found to have committed one or more regulatory infractions, including inadequate assets to meet liabilities, prolonged inactivity, closure of operations without regulatory approval, failure to commence business within 12 months of licence issuance, and inability to maintain the minimum capital requirement prescribed by law.

“The revocation of the licences is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors and ensure that licensed institutions comply with current laws and regulatory requirements,” the statement said.

The apex bank reiterated its commitment to maintaining a safe, sound and resilient financial system through strict supervision and enforcement of regulatory standards.

“The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions where necessary to maintain public confidence in the Nigerian financial system,” it added.

Among the affected institutions are Minji-Se Churchill Microfinance Bank (Rivers State), Merchant Microfinance Bank (Abia State), Gold Microfinance Bank (Lagos State), Crystabel Microfinance Bank (Bayelsa State), Creditville Microfinance Bank (Lagos State), OurPass Microfinance Bank (Ondo State), Entrepreneur Microfinance Bank (Lagos State) and Avantus Microfinance Bank (Osun State).

A significant number of the affected institutions are based in Kano State, including Zain Microfinance Bank, Bompai Microfinance Bank, Ajwa Microfinance Bank, NOW NOW Digital Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, Tofa Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank and Esteem Microfinance Bank.

Industry analysts say the move reflects the CBN’s determination to strengthen regulatory compliance, improve financial sector stability and eliminate weak institutions that pose risks to depositors and the broader banking ecosystem.

The development marks one of the largest single licence revocations in the microfinance banking sector in recent years as the regulator intensifies efforts to sanitise Nigeria’s financial services industry.

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Sujimoto Construction Limited has denied liability over a disputed ₦24 million claim, stating that the matter is currently before a court for determination and remains subject to ongoing legal proceedings.

The real estate firm clarified that the authority of an administrator appointed through an ex-parte court order has been suspended, pending the outcome of motions filed before the court. According to the company, the suspension takes effect until the court delivers a final ruling on the matter.

In a statement issued on Monday, Sujimoto said it had followed due legal process by depositing a bank draft for the disputed sum under protest, stressing that the move does not constitute an admission of liability.

The company disclosed that it has formally challenged the ex-parte order granted on November 14, 2025, noting that the representations made to the court at the time did not accurately reflect its current financial and operational status.

Sujimoto explained that evidence presented before the court shows the company remains financially stable and actively engaged in business operations. It stated that over the past 12 months, it has made payments running into billions of naira to creditors, including banks, private investors, and government agencies.

According to the firm, these payments include a voluntary repayment of ₦1.28 billion to the Enugu State Government on a contract that is still under dispute, underscoring what it described as its commitment to lawful and structured debt resolution.

The company further revealed that it holds assets valued at more than ₦90 billion, while its liabilities represent less than 10 per cent of its total asset base. Sujimoto added that its financial standing is reinforced by a Triple BBB+ Investment Grade rating for 2024–2025 issued by DataPro.

Reaffirming its commitment to corporate governance and transparency, Sujimoto said it remains open to constructive engagement with creditors and has consistently met its obligations through recognised legal channels.

The firm also highlighted its workforce strength, noting that it currently employs over 745 professionals and has paid more than ₦7 billion in wages over the past 12 years.

Commenting on the development, the Group Managing Director of Sujimoto Holdings, Dr Sijibomi Ogundele, said the company would continue to operate strictly within the confines of the law while prioritising project delivery and staff welfare.

“Sujimoto remains committed to integrity, accountability, and excellence. We will continue to operate transparently and ensure that all obligations are addressed in line with the law,” Ogundele said.

The company reiterated that it will pursue its legal position through the courts while maintaining operations and delivering real estate projects across Nigeria.

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Nigeria’s banking sector is undergoing one of its most comprehensive reforms in decades, as deposit money banks move to raise an estimated ₦4.14 trillion in fresh capital ahead of the March 31, 2026 recapitalisation deadline, according to a report by global professional services firm, Deloitte.

The recapitalisation exercise, introduced by the Central Bank of Nigeria (CBN) in April 2024, is aimed at strengthening financial stability, improving resilience to macroeconomic shocks, and positioning the banking system to support Nigeria’s ambition of building a $1 trillion economy by 2030.

Under the new framework, the CBN significantly raised minimum capital requirements, setting thresholds at ₦500 billion for commercial banks with international licences, ₦200 billion for national banks, and ₦50 billion for regional banks.

Merchant banks are required to maintain ₦50 billion, while non-interest banks must hold between ₦10 billion and ₦20 billion, depending on licence scope.

Unlike previous recapitalisation exercises, the apex bank adopted a stricter definition of qualifying capital, limiting it to paid-up share capital and share premium, while excluding retained earnings and other reserves.

This change effectively compelled most banks to raise new funds, even those that previously appeared adequately capitalised.

Deloitte noted that the policy shift became necessary as banks’ capital buffers were eroded by prolonged macroeconomic pressures, including high inflation, rising interest rates, exchange rate volatility, and foreign exchange illiquidity.

The firm said the recapitalisation would enable Nigerian banks to take on larger risks, strengthen liquidity positions, and expand their capacity to absorb losses arising from domestic and external shocks.

Progress so far suggests the sector is responding positively. CBN Governor Olayemi Cardoso disclosed that 27 banks have raised capital through public offers and rights issues, with 16 banks already meeting or exceeding the new minimum capital requirements well ahead of the deadline.

Speaking at the recent Bankers’ Dinner in Lagos, Cardoso said the recapitalisation programme remains on track, noting that stress tests conducted during the year confirmed the sector’s resilience, with key financial soundness indicators remaining within regulatory benchmarks.

He added that, with months left to the deadline, several banks are well positioned to comply comfortably, while others are making steady progress.

To safeguard the trillions of naira being injected into the financial system, the CBN is redesigning its credit-risk framework, focusing on stronger governance, improved transparency, and firmer accountability. The objective, according to Cardoso, is to prevent the boom-and-bust cycles that followed past recapitalisation efforts.

As part of the reforms, the apex bank has established a dedicated Compliance Department to oversee financial crime supervision, market conduct, corporate governance, enterprise security, and Environmental, Social and Governance (ESG) compliance.

In addition, the Credit Risk Management System (CRMS) has been upgraded and web-enabled, allowing banks to submit statutory returns and conduct real-time borrower checks, with plans underway to integrate the platform more closely with banks’ internal systems.

At its 303rd Monetary Policy Committee (MPC) meeting, the CBN-led committee expressed satisfaction with the banking system’s resilience and urged the apex bank to ensure a smooth conclusion of the recapitalisation process.

Beyond financial stability, regulators view the exercise as critical to Nigeria’s long-term growth strategy. Cardoso said the current capital base of Nigerian banks would be insufficient to finance a $1 trillion economy without decisive reforms.

CBN Deputy Governor Emem Usoro described recapitalisation as a key pillar of national economic planning, while UBA Group Managing Director, Oliver Alawuba, said the policy would strengthen banks’ ability to withstand shocks and fund long-term development.

Despite the higher capital thresholds, the CBN has reassured the public that the sector remains stable, noting that the non-performing loan ratio is within the five per cent prudential limit and liquidity ratios remain above regulatory minimums.

Analysts say the success of the recapitalisation programme will be critical in determining not only the future strength of Nigeria’s banking sector but also its capacity to drive sustainable economic growth in the coming years.

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