NDIC begins paying up to ₦2 million to customers of 46 failed microfinance banks

Precious Omolu 06:30 - 23 July 2026

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The Nigeria Deposit Insurance Corporation (NDIC) has commenced direct electronic payouts to customers affected by the revocation of 46 microfinance bank operating licences

The NDIC has started paying insured deposits of up to N2 million to customers of 46 microfinance banks whose licences were revoked by the CBN. Here's how eligible depositors will get their money.

NDIC has started paying insured deposits to customers of the 46 microfinance banks shut down by the CBN.
Eligible customers will receive up to N2 million, with payments sent directly to alternative bank accounts using BVNs.
Customers without a BVN have been asked to visit the nearest NDIC zonal office for verification before payment.
Depositors with balances above N2 million may receive additional money later through liquidation dividends after the NDIC recovers assets from the failed banks.

For thousands of Nigerians worried about their savings after the closure of dozens of microfinance banks, there's finally some good news.

The Nigeria Deposit Insurance Corporation (NDIC) says it has started paying insured deposits to customers of the 46 microfinance banks (MFBs) whose operating licences were revoked by the Central Bank of Nigeria (CBN).

The announcement was made on Wednesday by the NDIC's Managing Director and Chief Executive Officer, Thompson Sunday, during the International Association of Deposit Insurers Africa Regional Committee meeting in Abuja.

According to him, eligible depositors do not need to queue at NDIC offices as the agency is using the Nigeria Inter-Bank Settlement System (NIBSS) and customers' Bank Verification Numbers (BVNs) to send payments directly into their alternative bank accounts.

NDIC Managing Director Thompson Sunday confirmed that eligible customers of the closed MFBs are receiving payouts up to the maximum insured limit of ₦2 million directly into active accounts.

However, customers without a BVN have been asked to visit the nearest NDIC zonal office to complete verification before they can receive their money.

Sunday reminded Nigerians that the CBN officially withdrew the licences of the 46 microfinance banks on July 1, 2026, after the institutions failed to meet regulatory requirements needed to continue operating.

"The CBN revoked the licences of the 46 microfinance banks on 1 July 2026," he said.

He explained that the NDIC has already begun paying the maximum insured deposit of ₦2 million to eligible customers.

For depositors whose savings exceed the insured limit, Sunday said there is still hope. According to him, additional payments will be made once the NDIC recovers money from the failed banks' assets and outstanding loans.

The Central Bank of Nigeria (CBN) revoked operating licences for 46 microfinance banks after the financial institutions failed to meet regulatory requirements aimed at protecting system stability.

The recovered funds will then be shared with eligible depositors as liquidation dividends.

To reassure Nigerians, the NDIC boss pointed to previous cases where depositors received their money quickly.

By leveraging customers' Bank Verification Numbers (BVNs), the NDIC is executing direct electronic transfers to alternative bank accounts without requiring depositors to visit offices

He cited Heritage Bank, Aso Savings and Union Homes, saying insured customers of Heritage Bank got paid just four days after the bank's licence was revoked.

Although the NDIC Act gives the corporation up to 30 days to pay insured deposits after a bank's licence is withdrawn, Sunday said the agency is working to complete payments much earlier than the legal deadline.

The CBN had revoked the licences of the 46 microfinance banks because they could no longer meet the regulatory conditions required to operate. According to the apex bank, the move was aimed at protecting depositors' funds, strengthening confidence in Nigeria's banking system and ensuring banks comply with existing regulations.