The Nigeria Deposit Insurance Corporation (NDIC) has taken over the assets and operations of 46 microfinance banks following the revocation of their operating licences by the Central Bank of Nigeria (CBN).
The NDIC warned Nigerians against conducting any transactions with the affected institutions, stating that they are no longer legally permitted to operate.
In a statement issued on Wednesday by its Head of Communication and Public Affairs, Hawwau Gambo, the corporation confirmed it had been appointed liquidator for the failed banks under the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023.
As liquidator, the NDIC said it will oversee the closure of the banks, manage the winding-up process, and protect depositors’ interests in line with existing regulations.
It further cautioned members of the public against removing, concealing, or tampering with assets, records, or properties of the affected banks, warning that such actions could attract legal consequences.
The corporation disclosed that it has already commenced the liquidation process by taking possession of the institutions, while verification of depositors’ claims is ongoing to facilitate eligible payouts under the deposit insurance scheme.
The NDIC assured depositors that updates on the process will be communicated as the exercise progresses.
The development follows the CBN’s decision to revoke the licences of the 46 microfinance banks over their failure to meet required regulatory standards for continued operation in Nigeria’s financial sector.
