NDIC Starts Payments to Depositors of Failed Banks

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the payment of insured deposits to customers of 46 microfinance banks that recently failed. Mr. Thompson Sunday, the NDIC Managing Director and Chief Executive, announced this during an interview with the News Agency of Nigeria in Abuja.

The payments utilize the Nigeria Inter-Bank Settlement System and customers' Bank Verification Numbers (BVNs), 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 revoked the licenses of these banks on July 1, 2026, due to non-compliance with regulatory requirements. The NDIC, as the provisional liquidator, is paying a maximum insured deposit of N2 million to eligible customers, with further payments contingent on the recovery of the failed banks' assets.

Mr. Sunday cited prompt reimbursement examples, stating that insured depositors of Heritage Bank were paid within four days of the license revocation.