The Nigeria Deposit Insurance Corporation (NDIC) has commenced payment of 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 Managing Director and Chief Executive Officer of the NDIC, Thompson Oludare Sunday, during the sidelines of a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.
The development marks a significant step in protecting depositors affected by the closure of the microfinance banks and reinforces the NDIC’s statutory mandate to safeguard public confidence in Nigeria’s financial system.
Although the corporation did not disclose the total amount earmarked for the exercise, the commencement of payments is expected to bring relief to thousands of customers who have been unable to access their funds since the banks lost their operating licences.
The NDIC’s intervention follows the CBN’s decision to revoke the licences of the 46 microfinance banks over regulatory infractions and other operational concerns, as part of ongoing efforts to strengthen the country’s banking sector.
The deposit insurer reiterated its commitment to ensuring that eligible depositors receive their insured funds promptly while continuing the liquidation process to recover assets that may enable additional payments to uninsured depositors where applicable.
The compensation exercise is expected to boost public confidence in Nigeria’s financial safety net and reassure depositors that their insured funds remain protected even when licensed financial institutions fail.
