The Nigeria Deposit Insurance Corporation (NDIC) has commenced the disbursement of liquidation dividends to depositors, creditors, and shareholders of Pearl Microfinance Bank, which is currently undergoing liquidation.
This initiative is aimed at alleviating financial losses for verified stakeholders affected by the bank’s closure.
To claim their liquidation dividends, eligible individuals must present specific documentation, including a recent passport photograph, proof of deposit or shareholding such as a passbook or term deposit certificate, and a valid means of identification, such as a national ID card or driver’s license.
Physical and remote options
As an alternative to physical submission, depositors, creditors, and shareholders can submit their required documents electronically through the NDIC claims portal.
Additionally, NDIC has advised concerned individuals to visit their nearest NDIC office between May 26 and July 4, 2025, to process their claims.
This development is expected to reinforce confidence in Nigeria’s financial system while promoting banking compensation and financial recovery efforts.
Asset Liquidation for Failed Microfinance Banks
In May 2024, NDIC exercised its role as the liquidator for failed microfinance banks (MFBs), inviting interested members of the public to bid on assets from these defunct institutions.
The assets put up for sale included furniture, fixtures, fittings, equipment, generators, and motor vehicles, available through public competitive bidding and sealed auctions.
Pearl Microfinance Bank was among 18 other banks listed for asset liquidation, following the revocation of its operating license, alongside 131 other financial institutions, by the Central Bank of Nigeria (CBN) in May 2023.
Key Regulatory Decision by the CBN
The CBN officially announced the revocation of licenses for 132 microfinance and primary mortgage banks through an official gazette.
The decision was based on the institutions’ failure to comply with regulatory provisions under the Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.
According to the CBN, the affected banks:
- Ceased operations for six consecutive months, rendering them inactive.
- Failed to fulfill or comply with the conditions under which their licenses were granted.
- Did not meet the obligations imposed upon them by the CBN in accordance with BOFIA regulations.
The liquidation dividends issued by NDIC are expected to provide some financial relief to affected stakeholders while also ensuring the orderly resolution of closed financial institutions.
