NDIC Begins Automatic N2 Million Payout to Depositors of 46 Failed Microfinance Banks

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the payment of insured deposits to customers of 46 defunct microfinance banks, with eligible depositors receiving up to ₦2 million each through their Bank Verification Number (BVN)-linked alternative bank accounts.

The Corporation said the payments are being made automatically through the Nigeria Inter-Bank Settlement System (NIBSS), eliminating the need for affected customers to visit NDIC offices or complete physical documentation.

Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, disclosed that the exercise began immediately after the Central Bank of Nigeria (CBN) revoked the operating licences of the 46 microfinance banks on July 1, 2026.

According to him, the corporation leveraged depositors’ BVN details to identify their alternative bank accounts and credit them directly.

“We have traced depositors’ alternative accounts and credited them directly—no queues, no paperwork,” Sunday said during an event in Abuja.

The NDIC explained that the initiative is aimed at ensuring prompt reimbursement of insured deposits while reducing delays and the inconvenience traditionally associated with claims processing.

Under the NDIC deposit insurance scheme, each depositor of a licensed microfinance bank is entitled to a maximum insured payment of ₦2 million in the event of a bank failure.

The Corporation urged depositors who are yet to receive their insured sums to verify that their BVN is properly linked to an active bank account or contact the NDIC for further assistance.

The automatic payment system is part of ongoing efforts by the Corporation to strengthen depositor confidence and improve the efficiency of bank liquidation and claims settlement processes.