NDIC Commences Payout to Depositors of 46 Microfinance Banks After CBN Revocation
The Nigeria Deposit Insurance Corporation has begun paying depositors and taking control of assets following the Central Bank of Nigeria's revocation of licenses for 46 microfinance banks.
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The Nigeria Deposit Insurance Corporation (NDIC) has commenced payout to depositors of 46 microfinance banks whose operating licenses were revoked by the Central Bank of Nigeria (CBN). The action follows the CBN's decision to withdraw authorization for these institutions to conduct banking business, citing regulatory non-compliance.
According to the NDIC, the affected microfinance banks have ceased operations as licensed financial institutions. The corporation has initiated the process of taking over the assets and operations of the failed banks to facilitate orderly resolution and ensure prompt payment to eligible depositors. This step is part of the NDIC’s mandate to protect depositors and maintain confidence in Nigeria’s financial system.
The revocation of licenses underscores heightened regulatory scrutiny of the microfinance sector. The CBN has emphasized the need for strict adherence to prudential guidelines, particularly concerning capital adequacy, corporate governance, and risk management practices. The coordinated action between the CBN and NDIC reflects a broader effort to strengthen oversight and safeguard financial stability.
Depositors are advised to submit their claims through established channels as the NDIC advances the liquidation and asset recovery process. The full timeline for completion of payouts has not been disclosed.