NDIC begins liquidation of 46 microfinance banks, warns public against transactions
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN), warning members of the public against transacting with the failed institutions as it begins the verification of depositors and payment of insured deposits.
The Corporation disclosed this in a statement issued on Wednesday by its Head of Communication and Public Affairs, Hawwau Gambo.
According to the NDIC, it has been appointed the official liquidator of the affected banks pursuant to Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and 55(2) of the NDIC Act 2023.
The Corporation said the affected institutions have ceased to operate as licensed banks in Nigeria and that it has taken possession of their assets as part of the statutory liquidation process.
It explained that the liquidation exercise includes the immediate takeover of the banks, verification of depositors and payment of insured deposits to eligible customers.
“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 Corporation said.
It added that depositors and other stakeholders would be kept informed as the liquidation progresses.
“Depositors and the general public would be duly informed on an ongoing basis on further steps to be taken regarding the liquidation exercise,” it stated.
The NDIC advised depositors, creditors and members of the public to refrain from conducting any transactions with the affected banks, stressing that they no longer have the legal authority to carry out banking operations.
The Corporation also warned against the removal, concealment or interference with the assets, records or properties of the failed institutions, saying such actions constitute a violation of the law and could attract legal sanctions.
The liquidation follows the revocation of the operating licences of the 46 microfinance banks by the CBN on July 1, 2026, after the apex bank concluded that they no longer met the regulatory requirements to continue operating as licensed financial institutions.
The CBN attributed the licence revocations to persistent regulatory infractions, including inadequate capital, insufficient assets to meet liabilities, prolonged inactivity, unauthorised closure of operations and failure by some institutions to commence business within the stipulated period.
The affected institutions comprise Tier 1, Tier 2 and State microfinance banks operating across Lagos, Kano, the Federal Capital Territory, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra states.
Among the affected banks are Gold Microfinance Bank, Merchant Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Safegate Microfinance Bank, NOW NOW Digital Microfinance Bank, Bompai Microfinance Bank and Minjibir Microfinance Bank.
The NDIC said the liquidation process would facilitate the settlement of insured depositors’ claims in accordance with its statutory mandate while it proceeds with the realisation of the banks’ assets and resolution of outstanding liabilities.
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