NDIC Takes Over 46 Failed Microfinance Banks in Nigeria

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the takeover of assets from 46 microfinance banks that have failed, following the revocation of their operating licenses by the Central Bank of Nigeria (CBN) on July 1, 2026. Hawwau Gambo, head of the NDIC's public affairs department, issued a statement cautioning the public against engaging in transactions with these banks, which are no longer authorized to conduct banking business in Nigeria.

The NDIC has appointed officials to oversee the orderly winding up of these institutions in accordance with Section 12(2) of the Bank Financial Institutions Act 2020 and Section 55(1)(2) of the NDIC Act 2023. The liquidation process has already begun, including the verification of depositor claims for insured deposits.

The NDIC emphasized that any unauthorized transactions involving the failed banks could lead to legal consequences. The affected institutions include Gold Microfinance Bank, Merchant Microfinance Bank, and several others across various states.