Deposit insurer adopts BVN-based system to automatically reimburse eligible depositors after CBN licence revocations….
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the payment of insured deposits belonging to customers of 46 microfinance banks whose operating licences were recently revoked by the Central Bank of Nigeria (CBN).
The Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, disclosed this on Wednesday while speaking with journalists at the 2026 stakeholders’ retreat of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.
The retreat was themed: “Strengthening Financial Safety Nets in an Era of Banking Sector Recapitalisation and Fintech Innovation.”
The CBN had revoked the licences of the affected microfinance banks in July 2026 after they were found to have breached regulatory requirements.
The affected institutions were cited for issues including inadequate assets to cover liabilities, suspension of operations without approval, failure to provide financial intermediation services, inability to commence operations within the required period after obtaining licences, and failure to maintain the mandatory minimum capital base.
Following the revocation, the NDIC was appointed as provisional liquidator and has since commenced the process of reimbursing depositors whose funds are covered under the deposit insurance scheme.
Sunday explained that the corporation’s immediate responsibility is to settle guaranteed deposits, after which it will begin the recovery process by pursuing outstanding debts owed to the failed institutions and realising available assets to compensate depositors with balances above the insured limit.
“The CBN revoked the licences, and we became appointed as the provisional liquidator. We have started paying depositors of those banks, and gradually, we intend to cover all the insured depositors,” he said.
“Our function as liquidator would involve payment of guaranteed sums. Thereafter, we go after those who are owing the institutions and have not paid. We also make sure that we sell the assets that are available and realise their investment towards paying the uninsured portion of the deposit.”
The NDIC boss said the corporation has moved away from relying entirely on manual claims submissions by working with the Nigeria Inter-Bank Settlement System (NIBSS) to identify alternative bank accounts linked to customers’ Bank Verification Numbers (BVNs).
According to him, the system allows verified depositors to receive payments automatically without having to visit NDIC offices or submit individual claims.
“Previously, we used to depend on people to come and file for payment. But now, in collaboration with NIBSS, we trace your alternative account in other institutions through your BVN and make payments to you automatically,” Sunday explained.
He added that as more depositors are identified through the system, additional payments will continue to be processed.
Sunday said the same technology-driven approach was used during the liquidation of the defunct Heritage Bank, where approximately 700,000 depositors had been reimbursed.
He noted that insured deposits were paid within days of the bank’s closure, while liquidation dividends were later declared for customers whose balances exceeded the insured limit.
However, the NDIC chief acknowledged that some depositors of Heritage Bank and other failed institutions could not be located through available records.
He urged such customers to come forward with proof of account ownership and relevant documents to enable verification and payment.
“For the guaranteed sum, we do not need you to come to be paid. There are, of course, challenges in the Nigerian system. There are depositors that we have not been able to trace, and this is an opportunity for them to also come forward,” he said.
The NDIC reaffirmed its commitment to protecting depositors, maintaining confidence in Nigeria’s banking system and strengthening the country’s financial safety framework amid ongoing changes in the financial sector.
