Customers of 46 defunct microfinance banks are now collecting insured savings from the Nigeria Deposit Insurance Corporation (NDIC). Eligible depositors can receive up to ₦2 million apiece through alternative bank accounts connected to their Bank Verification Number (BVN).
According to the Corporation, impacted customers no longer need to visit NDIC offices or fill out paperwork because the payments are being made automatically via the Nigeria Inter-Bank Settlement System (NIBSS).
The exercise started as soon as the Central Bank of Nigeria (CBN) revoked the operating licenses of the 46 microfinance banks on July 1, 2026, according to Thompson Sunday, Managing Director and Chief Executive Officer of the NDIC.
He claims that the company used depositors’ BVN information to locate their alternate bank accounts and give them direct credit.
At an event in Abuja on Sunday, he stated, “We have traced depositors’ alternative accounts and credited them directly—no queues, no paperwork.”
The initiative’s goal, according to the NDIC, is to ensure that insured deposits are promptly reimbursed while minimising the delays and inconveniences typically connected with processing claims.
In the case of a bank failure, each depositor of a licensed microfinance bank is entitled to a maximum guaranteed payment of ₦2 million under the NDIC deposit insurance plan.
Depositors who have not yet received their insured amounts were advised by the Corporation to confirm that their BVN is correctly connected to an active bank account or to get in touch with the NDIC for additional support.
The Corporation’s continuous efforts to boost depositor confidence and enhance the effectiveness of bank liquidation and claims settlement procedures include the automatic payment system.
About the Author
