NDIC Starts Payments to Depositors of Failed MfBs

The Nigeria Deposit Insurance Corporation (NDIC) has initiated the payment of insured deposits to customers of 46 microfinance banks that recently failed. Mr.

Thompson Sunday, the Managing Director and Chief Executive of NDIC, announced this during an interview with the News Agency of Nigeria in Abuja. The NDIC is utilizing the Nigeria Inter-Bank Settlement System and customers’ Bank Verification Numbers (BVNs) to facilitate these payments, allowing for direct crediting of depositors' alternative bank accounts without requiring physical visits.

Customers without BVNs are advised to visit NDIC zonal offices for verification and payment processing. The Central Bank of Nigeria (CBN) revoked the licenses of these banks on July 1, 2023, due to non-compliance with regulatory requirements.

NDIC has begun payments of up to N2 million to eligible depositors, with further payments contingent on the recovery of the failed banks' assets. Mr.

Sunday cited prompt reimbursement examples from Heritage Bank, Aso Savings, and Union Homes, emphasizing NDIC's commitment to surpassing the 30-day legal timeframe for payments.