The Nigeria Deposit Insurance Corporation (NDIC) has been formally appointed as the official Liquidator for the orderly closure of 46 Microfinance Banks (MFBs) whose operating licenses were revoked by the Central Bank of Nigeria (CBN) on July 1, 2026.
The appointment, made pursuant to Section 12 (2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55 (1 and 2) of the NDIC Act 2023, marks a significant step in resolving the failure of these institutions and protecting depositors’ interests.
In a statement issued on Wednesday, the NDIC informed depositors of the affected banks and the general public that the 46 MFBs are no longer authorised to conduct any form of banking business in Nigeria. The Corporation urged members of the public to refrain from engaging in any unauthorised transactions with the closed banks.
It also warned against any attempts by individuals or groups to remove, conceal, retain, or interfere with the assets, records, or properties of the defunct institutions, stressing that such actions would violate the law and attract appropriate legal sanctions.
‘The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors,’ the statement said.
The Corporation, in a statement on Wednesday, assured that the liquidation exercise would be conducted in a transparent and systematic manner to ensure maximum recovery of assets and prompt settlement of verified claims. Depositors and the general public would be kept informed regularly on subsequent developments, including timelines for claims verification and payment.
This latest development underscores ongoing regulatory efforts to sanitise the microfinance sub-sector, which has faced challenges ranging from poor corporate governance, undercapitalisation, and rising non-performing loans in recent years. Industry analysts note that the revocation of the 46 licenses reflects the CBN’s determination to maintain stability in the financial system and safeguard public confidence in deposit-taking institutions.
The NDIC, as the statutory liquidator, is expected to compile a comprehensive inventory of the banks’ assets and liabilities while prioritising the protection of insured deposits up to the maximum coverage limit. Affected customers are advised to visit the NDIC’s official website or designated verification centres for further guidance once details are released.
Financial experts believe the swift intervention will minimise systemic risks and prevent contagion effects on healthier microfinance operators. The Corporation reiterated its commitment to ensuring that all eligible depositors receive their insured funds without undue delay as part of the liquidation process.