NDIC Begins Paying Depositors After CBN Revokes 46 Bank Licences

The Nigeria Deposit Insurance Corporation (NDIC) has begun taking over the assets and operations of 46 microfinance banks whose operating licences were withdrawn by the Central Bank of Nigeria (CBN).

NEWSNGR reports that the agency also warned Nigerians not to carry out any form of banking transaction with the affected institutions because they are no longer allowed to operate.

The warning was made in a statement issued on Wednesday by the Head of Communication and Public Affairs at the NDIC, Hawwau Gambo, after the CBN announced the cancellation of the banks’ licences.

According to the corporation, it has been officially appointed to handle the liquidation of the failed banks under the provisions of the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023.

As the appointed liquidator, the corporation will oversee the closure of the banks and manage the process of settling their affairs while protecting depositors’ interests.

The NDIC said the affected banks have completely lost their legal right to provide banking services in Nigeria.

It therefore advised customers and the general public to stay away from any business dealings involving the institutions.

The corporation also warned against removing, hiding, keeping or interfering with the banks’ assets, records or other property, stating that such actions could violate the law and attract legal action.

The agency disclosed that it has already started the liquidation process by taking possession of the failed banks.

It added that work is ongoing to verify depositors’ claims before paying insured deposits to customers who qualify under the deposit insurance scheme.

It assured depositors that information about the liquidation process and other necessary steps would be made available as the exercise continues.

The CBN had earlier revoked the operating licences of the 46 microfinance banks after finding that they failed to meet regulatory conditions required to continue operating in the country’s banking sector.