NDIC assumes control of 46 failed Microfinance Banks, commences verification of depositors

Nigeria Deposit Insurance Corporation (NDIC) has announced that it has officially taken over the liquidation of 46 Microfinance Banks (MFBs) following the revocation of their operating licences by the Central Bank of Nigeria (CBN).

The revocation, which took effect on July 1, 2026, was carried out by the apex bank in line with its regulatory powers, while the NDIC was appointed as the official liquidator pursuant to Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55 (1) and (2) of the NDIC Act 2023.

In a press statement issued by the Head of Communication and Public Affairs Department, Hawwau Gambo, the Corporation informed depositors and the general public that the affected institutions have ceased to operate as licensed financial institutions and are no longer authorised to carry out banking activities in Nigeria.

The NDIC warned members of the public to refrain from conducting any transactions with the affected banks, stressing that any attempt to remove, conceal, retain or tamper with the assets, records or other properties belonging to the failed institutions would amount to a violation of the law and could attract legal sanctions.

According to the Corporation, it has already commenced the orderly closure of the failed banks through immediate takeover, verification of depositors and payment of insured deposits to eligible customers.

The Corporation assured customers that it would continue to provide timely updates throughout the liquidation process, including procedures for deposit verification, claims processing and payment of insured sums.

The NDIC explained that the liquidation exercise is aimed at safeguarding the interests of depositors while ensuring an orderly resolution of the failed financial institutions in accordance with existing banking laws.

The affected banks are spread across several states of the federation, including Lagos, Kano, Abuja, Rivers, Abia, Kebbi, Ogun, Niger, Plateau, Kaduna, Benue, Cross River, Bayelsa, Delta, Ondo, Oyo, Osun, Kwara, Anambra and Akwa Ibom.

Among the affected institutions are Gold Microfinance Bank, Merchant Microfinance Bank, Janmaa Microfinance Bank, Bompai Microfinance Bank, Crystabel Microfinance Bank, Safegate Microfinance Bank, Supreme Microfinance Bank, Creditville Microfinance Bank, MBAG Microfinance Bank, Verdant Microfinance Bank, Entrepreneur Microfinance Bank, Frontline Microfinance Bank, Straight Sahara Microfinance Bank, OurPass Microfinance Bank, Casha Microfinance Bank, Avantus Microfinance Bank and several others.

The NDIC reassured depositors that it remains committed to protecting insured deposits and ensuring that eligible customers receive their payments promptly as the liquidation exercise progresses.

The Corporation urged all affected depositors to await further official announcements and cooperate fully with the verification process, while advising the public to rely only on official NDIC communications for information regarding the liquidation of the affected microfinance banks.