The Nigeria Deposit Insurance Corporation (NDIC) has been named the official liquidator for 46 microfinance banks whose licenses were withdrawn by the Central Bank of Nigeria (CBN) on July 1, 2026. The move follows the legal framework under Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and relevant provisions in the NDIC Act of 2023, including Section 55(1) and (2). In a public notice, the NDIC said the affected institutions are no longer permitted to carry out banking activities in Nigeria.
The corporation said depositors should treat the closure as final and advised the public to avoid any dealings with the shut institutions that are not authorised. NDIC also warned against attempts by individuals to remove, hide, keep, or interfere with the banks’ assets, records, or properties, noting that such actions could amount to a breach of the law and may lead to legal consequences.
NDIC added that it has started an orderly closure process for the failed banks, beginning with their immediate takeover, followed by verification work and the payment of insured amounts to eligible depositors. The corporation said depositors and the broader public will receive further communications as the liquidation exercise progresses, including updates on additional steps to be taken.
