NDIC Takes Over 46 Delicensed Microfinance Banks in Nigeria

The Nigeria Deposit Insurance Corporation (NDIC) has assumed control of 46 microfinance banks whose operating licenses were revoked by the Central Bank of Nigeria (CBN) on July 1, 2026. This decision was made under the Bank Financial Institutions Act 2020 and the NDIC Act 2023, following a regulatory sweep that revealed significant operational deficiencies in these institutions.

Hawwau Gambo, head of the NDIC's public affairs department, advised the public against unauthorized transactions related to these banks, warning that such actions could lead to legal consequences. Financial expert Uju Ogubunka expressed concerns that the sudden closure of these banks would disrupt the local credit system and negatively impact the economy, particularly affecting grassroots financial inclusion.

The NDIC is committed to ensuring a transparent liquidation process and will verify payments to eligible depositors while mobilizing resources for a swift intervention. The CBN's actions were deemed necessary to maintain the stability of the financial sector and protect depositors.