NDIC begins paying up to ₦2 million to customers of 46 failed microfinance banks
The Nigeria Deposit Insurance Corporation (NDIC) has commenced direct electronic payouts to customers affected by the revocation of 46 microfinance bank operating licences. Eligible depositors will receive up to N2 million, with payments sent directly to alternative bank accounts using Bank Verification Numbers (BVNs).
How payments are being processed
The announcement was made on Wednesday by the NDIC's Managing Director and Chief Executive Officer, Thompson Sunday, during the International Association of Deposit Insurers Africa Regional Committee meeting in Abuja. According to him, eligible depositors do not need to queue at NDIC offices as the agency is using the Nigeria Inter-Bank Settlement System (NIBSS) and customers' BVNs to send payments directly into their alternative bank accounts.
Customers without a BVN have been asked to visit the nearest NDIC zonal office to complete verification before they can receive their money.
Background on the bank closures
Sunday reminded Nigerians that the CBN officially withdrew the licences of the 46 microfinance banks on July 1, 2026, after the institutions failed to meet regulatory requirements needed to continue operating. "The CBN revoked the licences of the 46 microfinance banks on 1 July 2026," he said.
He explained that the NDIC has already begun paying the maximum insured deposit of N2 million to eligible customers. For depositors whose savings exceed the insured limit, Sunday said there is still hope. Additional payments will be made once the NDIC recovers money from the failed banks' assets and outstanding loans. The recovered funds will then be shared with eligible depositors as liquidation dividends.
Reassurance from past successes
To reassure Nigerians, the NDIC boss pointed to previous cases where depositors received their money quickly. He cited Heritage Bank, Aso Savings and Union Homes, saying insured customers of Heritage Bank got paid just four days after the bank's licence was revoked. Although the NDIC Act gives the corporation up to 30 days to pay insured deposits after a bank's licence is withdrawn, Sunday said the agency is working to complete payments much earlier than the legal deadline.
Regulatory rationale
The CBN had revoked the licences of the 46 microfinance banks because they could no longer meet the regulatory conditions required to operate. According to the apex bank, the move was aimed at protecting depositors' funds, strengthening confidence in Nigeria's banking system and ensuring banks comply with existing regulations.
