NDIC begins liquidation of 46 failed MfB, allays fears of depositors

By Onu Okorie

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the orderly liquidation of 46 failed microfinance banks following the revocation of their operating licences by the Central Bank of Nigeria (CBN).

The Corporation said the affected banks ceased to be authorized to conduct banking business after the CBN revoked their licences on July 1, 2026, in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

In a statement, the NDIC disclosed that it had been appointed as the official liquidator of the failed institutions pursuant to Section 12(2) of BOFIA 2020 and Sections 55(1) and (2) of the NDIC Act 2023.

According to the Corporation, the liquidation process has already begun and will include the immediate takeover of the failed banks, verification of depositors’ accounts, and payment of insured deposits to eligible customers.

The NDIC assured depositors and the general public that the liquidation exercise would be carried out in an orderly and transparent manner, adding that it would continue to provide regular updates on the progress of the exercise and subsequent steps.

The Corporation also warned members of the public against conducting any transactions with the closed banks, stressing that they are no longer licensed to carry out banking operations in Nigeria.

It further cautioned against any attempt to remove, conceal, retain, or interfere with the assets, records, or properties of the affected banks, noting that such actions constitute violations of the law and could attract appropriate legal sanctions.

The NDIC reiterated its commitment to protecting insured depositors and ensuring an orderly resolution of failed financial institutions in line with its statutory mandate.