Customers with money in failed Nigerian banks may still recover their savings, but the route to repayment depends on whether their deposits moved to another institution or remained subject to liquidation. Official records identify six commercial bank licence revocations from 2010 onwards: Afribank, Bank PHB, Spring Bank, African International Bank, Skye Bank and Heritage Bank. Hundreds of smaller lenders also lost their licences during the period.
What Happened to the Six Major Banks
Some closures resulted in replacement banks taking over customers’ accounts, preserving access to deposits. Others required the Nigeria Deposit Insurance Corporation (NDIC) to verify claims and organise repayments.
- Afribank (2011): Transferred to Mainstreet, later acquired by Skye, whose business passed to Polaris.
- Bank PHB (2011): Keystone assumed its assets and liabilities, including deposits.
- Spring Bank (2011): Enterprise took over, before its acquisition by Heritage.
- African International Bank (2013): Entered liquidation; outstanding claims should be checked with NDIC.
- Skye Bank (2018): Polaris assumed its entire assets and liabilities.
- Heritage Bank (2024): NDIC commenced insured repayments and subsequent liquidation dividends.
NDIC records show that the 2011 bridge-bank arrangements preserved banking services for more than 3.7 million depositors. Skye customers similarly continued operating their accounts through Polaris.
Smaller Bank Closures Widen the Picture
The six-bank figure covers commercial banks identified in the review, rather than every failed deposit-taking institution. NDIC documented 103 microfinance bank closures in 2010, another 83 in 2014 and 42 in 2020. In 2023, 179 microfinance banks and four mortgage banks lost their licences. Another 46 microfinance bank licences were revoked in July 2026. These figures should not be presented as a complete sector-wide total. Reinstated licences, acquisitions and different closure exercises complicate the count.
In April 2026, NDIC said 89 institutions from the 2023 closures had been acquired under arrangements transferring assets and liabilities to newly licensed institutions. Customers should therefore establish whether a successor institution holds their deposits before pursuing liquidation claims.
How Much Can Customers Recover?
NDIC’s published insurance limits are ₦5 million per depositor at a deposit money bank and ₦2 million at a microfinance, primary mortgage or payment service bank. These are maximum protections, not automatic compensation awards. Customers receive their verified eligible balances up to the applicable ceiling.
Depositors in older failed banks should confirm the limit governing their claims because earlier coverage levels were lower. For Heritage customers, NDIC began paying up to ₦5 million per depositor after the June 2024 closure. Larger balances remained eligible for additional recovery through liquidation. The corporation subsequently announced ₦46.6 billion in first liquidation dividends in April 2025 and ₦24.3 billion in second dividends in January 2026. These were collective distributions to eligible depositors, with further payments dependent on recoveries.
Steps to Reclaim Trapped Funds
Customers should first confirm with NDIC whether their accounts were transferred or remain in liquidation. Next, gather proof of the deposit, such as a statement, passbook, cheque book or fixed-deposit certificate, alongside valid identification, a passport photograph and an active receiving account.
Complete the depositor verification form through the NDIC claims page. Scanned manual forms and supporting documents can also be submitted to claimscomplaints@ndic.gov.ng. Names and account details should match bank records, according to a report by NDIC.
Missing BVNs, inconsistent names and receiving-account restrictions can delay payment. Customers awaiting refunds should request a claim-status check. Balances above insurance limits depend on asset sales and debt recovery. Depositors retain their claims, but full repayment and its timing cannot be guaranteed.
