NDIC begins liquidation, warns public after CBN closes 46 microfinance banks

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN), warning members of the public against transacting with the failed institutions as it begins the verification of depositors and payment of insured deposits.

The development was announced in a press statement issued on Wednesday by the Head of Communication and Public Affairs Department of the NDIC, Hawwau Gambo.

According to the Corporation, it has been appointed the official liquidator of the affected banks pursuant to Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and 55(2) of the NDIC Act 2023.

What the statement says

The NDIC said the affected institutions have ceased to operate as licensed banks in Nigeria and that it has already taken over their assets as part of the statutory liquidation process.

• “The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors,” the Corporation said.

It added that depositors would continue to receive updates as the liquidation progresses.

• “Depositors and the general public would be duly informed on an ongoing basis on further steps to be taken regarding the liquidation exercise,” the statement added.

The Corporation advised depositors, creditors and the general public to avoid any transactions with the affected banks, stressing that they no longer have the legal authority to conduct banking business.

It also warned against tampering with the assets or records of the failed institutions.

• “Members of the public are strongly advised against any unauthorized transaction with the closed banks, or any attempt by individuals to remove, conceal, retain, or interfere with the assets, records, or properties of the banks, as this may constitute a violation of the law that could attract appropriate legal consequences,” the statement said.

What you should know

The announcement follows the CBN’s revocation of the operating licences of the 46 microfinance banks on July 1, 2026, after determining that they no longer met the regulatory conditions required to continue operating as licensed financial institutions.

The apex bank cited a combination of regulatory breaches, including inadequate capital, insufficient assets to meet liabilities, prolonged inactivity, unauthorised closure of operations and failure to commence business within the stipulated period.

• The affected institutions include Tier 1, Tier 2 and State microfinance banks operating across Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra. They include Gold Microfinance Bank, Merchant Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Safegate Microfinance Bank, NOW NOW Digital Microfinance Bank, Bompai Microfinance Bank, Minjibir Microfinance Bank and several others.

The liquidation process is expected to pave the way for the settlement of insured depositors’ claims in line with the NDIC’s statutory mandate, while the Corporation proceeds with the realisation of the banks’ assets and resolution of outstanding liabilities.