The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of 46 microfinance banks whose operating licences were recently revoked by the Central Bank of Nigeria (CBN), assuring eligible depositors that the process of verifying claims and paying insured deposits has begun.
The corporation said it has formally taken over the failed institutions in line with its statutory mandate and warned members of the public against conducting any business with the affected banks or tampering with their assets, records or properties.
According to the NDIC, once the CBN revokes a bank’s operating licence under the provisions of the Banks and Other Financial Institutions Act (BOFIA), it automatically assumes responsibility as the official liquidator of the failed institution.
The agency explained that the liquidation process includes taking over the banks, verifying depositors’ claims, paying insured deposits to eligible customers, recovering assets and ensuring an orderly winding down of the institutions.
It stressed that the affected microfinance banks have ceased to be licensed financial institutions and are no longer authorised to carry out banking operations in Nigeria.
The NDIC also cautioned customers, creditors and the general public against engaging in any transaction with the failed banks or attempting to remove, conceal, retain or interfere with any of their assets or official records, warning that such actions could attract legal sanctions.
The corporation assured depositors that updates would be provided as the liquidation progresses and urged affected customers to cooperate with officials during the verification exercise to facilitate the payment of insured deposits.
The liquidation follows the CBN’s decision to revoke the operating licences of the 46 microfinance banks over multiple regulatory infractions, including insolvency, inadequate capital, prolonged inactivity and failure to meet conditions required for continued operation. The revocation took effect on July 1, 2026, as part of the apex bank’s efforts to strengthen financial sector stability and protect depositors.
