NDIC Initiates Payouts to Depositors of Failed MFBs

The Nigeria Deposit Insurance Corporation (NDIC) has commenced payouts to depositors of 46 failed microfinance banks whose operating licenses were revoked by the Central Bank of Nigeria (CBN). Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, announced this on Wednesday in Lagos during a retreat for the House of Representatives Committee on Insurance and Actuarial Matters.

The NDIC has been appointed as the provisional liquidator for these banks and is actively pursuing loan recoveries and asset sales to reimburse depositors with balances exceeding the insured limit. The NDIC has partnered with the Nigeria Inter-Bank Settlement System to facilitate automatic payments to depositors through their Bank Verification Numbers (BVNs), allowing for direct payments into their accounts without the need for filing claims.

This method has already expedited payments to depositors of Heritage Bank, where approximately 700,000 customers have received their insured deposits since the bank's license revocation. The NDIC is also working to trace depositors from legacy institutions and will use proceeds from asset sales to settle uninsured deposits.