The Nigeria Deposit Insurance Corporation (NDIC) has commenced the reimbursement of depositors affected by the recent closure of 46 microfinance banks, assuring customers that efforts are underway to ensure every eligible depositor receives their insured funds. This follows the revocation of the banks' operating licences by the Central Bank of Nigeria (CBN), which subsequently appointed the NDIC as the provisional liquidator of the failed financial institutions.
NDIC Begins Payments to Depositors
Speaking during a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos on Wednesday, the Managing Director and Chief Executive of the NDIC, Oludare Sunday, confirmed that the Corporation had already begun paying insured depositors. According to him, the reimbursement process is ongoing and will gradually cover all eligible customers of the affected microfinance banks.
"We have started paying depositors of those banks, and gradually we intend to cover all the insured depositors," he said.
Recovery of Loans and Assets Underway
Beyond paying the insured deposits, Sunday explained that the NDIC has also intensified efforts to recover outstanding loans owed to the failed institutions while disposing of their assets and investments, Leadership reports. He noted that proceeds from these recoveries would be used to settle depositors whose balances exceed the insured limit through liquidation dividends.
"Our responsibility does not end with paying the guaranteed deposits. We also recover debts, sell available assets and use the proceeds to pay uninsured depositors," he explained.
BVN Helping NDIC Locate Customers
Although the NDIC did not disclose the number of depositors already paid, Sunday revealed that the Corporation is working closely with the Nigerian Interbank Settlement System (NIBSS) to identify customers through their Bank Verification Numbers (BVNs). He said payments are being made automatically whenever eligible depositors are successfully traced, adding that more people will receive their money as additional records are verified.
700,000 Heritage Bank Customers Already Paid
Providing an update on the liquidation of Heritage Bank, Sunday disclosed that approximately 700,000 depositors have already received their insured deposits. However, he admitted that some former customers remain difficult to trace because many accounts were opened before the BVN system was introduced, while others contained incomplete or outdated contact information.
He urged anyone who previously held an account with Heritage Bank but has not received payment to come forward for verification. According to him, some records only contained vague addresses, making it impossible to locate customers without their cooperation.
NDIC Reassures Nigerians
The NDIC boss reiterated that the Corporation remains committed to protecting depositors and maintaining confidence in Nigeria's banking system, especially as the financial sector continues to evolve through bank recapitalisation and fintech innovation. He added that more than 98 per cent of depositors, representing over 281 million accounts across insured financial institutions, are fully protected under the NDIC's deposit insurance scheme, providing reassurance that eligible customers will continue to receive compensation whenever insured banks fail.
NDIC Invites Customers of 46 Failed Microfinance Banks
Legit.ng earlier reported that the recent liquidation of 46 microfinance banks in Nigeria by the Nigeria Deposit Insurance Corporation (NDIC) followed their license revocation by the Central Bank of Nigeria (CBN). The move not only affects thousands of depositors but also raises concerns about the future stability of Nigeria's banking system, as many individuals and families face uncertainty in recovering their hard-earned money.
