NDIC Begins Compensation for Depositors of 46 Liquidated Microfinance Banks

By Benson Daniel

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the payment of insured deposits to customers of 46 liquidated microfinance banks (MFBs), reaffirming its commitment to protecting depositors and maintaining confidence in Nigeria’s financial system.

The corporation said the exercise follows the revocation of the operating licences of the affected microfinance banks by the Central Bank of Nigeria (CBN), triggering the activation of the deposit insurance process for eligible customers.

According to the NDIC, verified depositors will receive payments up to the insured limit in line with the provisions of the Nigeria Deposit Insurance Act. The corporation noted that the initiative is intended to cushion the financial impact of the bank closures on customers and reinforce public confidence in the country’s banking sector.

The agency urged affected depositors to present the required documentation and verify their account details to facilitate prompt payment. It also encouraged customers with alternative bank accounts linked to their Bank Verification Number (BVN) to ensure their information is up to date to enable seamless disbursement.

The NDIC explained that depositors whose balances exceed the insured limit may receive additional payments from the liquidation proceeds of the failed institutions as assets are recovered and disposed of, in accordance with established legal procedures.

Financial experts described the exercise as a crucial safeguard for depositors, noting that the deposit insurance scheme plays a vital role in preserving financial stability and preventing panic following the failure of financial institutions.

The corporation reiterated its commitment to ensuring an efficient and transparent reimbursement process while continuing to strengthen public awareness of the benefits of deposit insurance in Nigeria’s banking system.

The commencement of payments underscores the NDIC’s mandate to protect depositors, support financial system stability and enhance confidence in regulated financial institutions across the country.