The Central Bank of Nigeria (CBN) has made a significant disclosure regarding payments to depositors of failed financial institutions, revealing that substantial sums were disbursed during the first half of 2025. According to the latest Financial Stability Report from the apex bank, these payments represent ongoing efforts to protect depositors and maintain stability within Nigeria's financial system.
Insured Depositors Receive N3.31 Billion in First Half of 2025
The CBN reported that 6,422 insured depositors from 651 failed financial institutions received a total of N3.31 billion during the first six months of 2025. This disclosure highlights the continued implementation of deposit insurance mechanisms designed to safeguard Nigerian bank customers.
Breakdown by Financial Institution Type
The 651 financial institutions currently undergoing liquidation include:
- 50 commercial banks
- 546 microfinance banks
- 55 primary mortgage banks
During the review period, commercial bank depositors received the lion's share of payments, with N2.94 billion disbursed to 6,127 insured depositors. Meanwhile, microfinance bank depositors received N30 million distributed among 285 insured depositors.
Cumulative Payments Reach Significant Milestones
On a cumulative basis, the figures reveal the substantial scale of the liquidation process. The CBN disclosed that N60.97 billion has been paid to 1,152,146 insured depositors of the 50 commercial banks in liquidation. For microfinance banks, cumulative payments stand at N5.17 billion distributed to 135,943 insured depositors.
Primary mortgage banks showed smaller but notable activity, with 10 insured depositors receiving N3.44 million during the first half of 2025. Cumulatively, these institutions have seen N368.08 million paid to 2,703 insured depositors.
Uninsured Depositors Also Benefit from Liquidation Process
Beyond the insured depositors, the CBN revealed that uninsured depositors have also received substantial payments. During the first half of 2025, N3.32 billion was disbursed to uninsured depositors of failed commercial and microfinance banks.
The cumulative figures for uninsured depositors are particularly striking. For commercial banks, cumulative payments have reached N137.12 billion, while microfinance banks have seen N248.90 million paid to uninsured depositors. No payments were made to uninsured depositors of primary mortgage banks during the review period, leaving their cumulative total unchanged at N261.99 million.
Understanding Uninsured Deposits
The CBN clarified that uninsured deposits refer to funds exceeding the maximum deposit insurance coverage limits. These limits vary by institution type, with coverage typically set at N5 million for commercial banks and N2 million for other financial institutions.
Liquidation Process Priorities and Methodology
The apex bank explained that the liquidation process follows a structured approach with clear priorities. According to the CBN, the process focuses on three key areas:
- Guaranteed payouts to insured depositors
- Asset recovery through debt collection and physical asset sales
- Settlement of uninsured deposits above coverage limits
This methodology ensures that depositors receive protection according to established protocols while maximizing recovery from failed institutions. The priority given to uninsured deposits above coverage limits represents an important protection mechanism for depositors with larger account balances.
Historical Context and Comparison
The report provides interesting comparative data that highlights trends in the liquidation process. When compared to the second half of 2024, the first half of 2025 showed continued activity across all institution types.
For commercial banks, the N2.94 billion paid in H1 2025 represents ongoing liquidation activity, though at a different scale than the N39.54 billion paid to 565,490 depositors during the second half of 2024. Similarly, microfinance bank payments of N30 million to 285 depositors in H1 2025 compare to N10 million paid to 158 depositors in H2 2024.
These figures demonstrate the ongoing nature of bank liquidation processes in Nigeria and the CBN's commitment to resolving failed financial institutions in a systematic manner that protects depositor interests.
