NDIC begins liquidation and depositor payouts for 46 revoked microfinance banks

NDIC has commenced the liquidation of 46 microfinance banks after the CBN revoked their licences, assuring eligible depositors of insured payments.

The Nigeria Deposit Insurance Corporation (NDIC) says it has commenced the liquidation of the 46 microfinance banks (MFBs) whose operating licences were revoked by the Central Bank of Nigeria (CBN).   NDIC, in a statement on Wednesday, said it had been appointed the official liquidator of the affected institutions pursuant to Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and (2) of the NDIC Act 2023.   Under Section 12(2) of the BOFIA 2020, the corporation automatically becomes the liquidator of a bank whose licence has been revoked by the CBN.   In addition, the referenced Section of the NDIC Act 2023 empowers the organisation to take over the failed institution, verify depositors’ claims, pay insured deposits, recover assets, and oversee the liquidation process     In the statement on Wednesday, the NDIC said the 46 affected banks are no longer authorised to carry out banking business in Nigeria.   The corporation warned members of the public against transacting with the failed lenders or attempting to remove, conceal, retain or interfere with their assets, records or properties — warning that such actions could attract 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 reads.     The corporation said depositors and the public would be updated on subsequent steps in the liquidation process.   Earlier, the CBN revoked the operating licences of 46 microfinance banks with effect from July 1, 2026, citing their failure to meet regulatory requirements for continued operation.   The apex bank said the action, approved by Olayemi Cardoso, its governor, followed one or more regulatory breaches, including insufficient assets to meet liabilities, closure of operations without approval, inactivity and cessation of financial intermediation.   Other regulatory violations are failure to commence operations within 12 months of obtaining a licence, and failure to maintain minimum capital funds unimpaired by losses.   The affected institutions include Merchant MFB and Abia SME MFB in Abia, Crystabel Microfinance Bank in Bayelsa, Winview MFB and CASHA MFB in the federal capital territory (FCT), Gold MFB, Creditville MFB and Entrepreneur MFB in Lagos, among others.   The CBN said the revocation forms part of its efforts to safeguard the stability of the financial system, protect depositors and ensure compliance with banking regulations.

NDIC warns Nigerians against dealings with 46 revoked microfinance banks as it assumes liquidation duties, ensuring the protection of depositors' interests.

The NDIC has taken over 46 microfinance banks whose licenses were revoked by the CBN. Learn about the liquidation process and depositor payment. Read More: https://punchng.com/ndic-takes-over-46-delicensed-microfinance-banks/

According to the corporation, the affected banks have ceased to operate as licensed financial institutions and are no longer authorised to carry out banking business in Nigeria. The post NDIC begins payout to depositors after CBN revokes licences of 46 microfinance banks appeared first on Premium Times Nigeria.

The Nigeria Deposit Insurance Corporation, NDIC, has been appointed as the official Liquidator of the 46 Microfinance Banks, MFBs, revoked by the Central Bank of Nigeria, CBN, on July 1, 2026. This is pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act of 2023. The Corporation, in […] NDIC takes over 46 revoked microfinance banks, warns against illegal transactions