Sh*ck As NDIC Starts Paying Depositors After CBN Revokes 46 Bank Licences

According to Ireporter Online, the Nigeria Deposit Insurance Corporation (NDIC) has commenced the takeover of assets and operations of 46 microfinance banks whose operating licences were recently withdrawn by the Central Bank of Nigeria (CBN). The agency also cautioned Nigerians against engaging in any banking transactions with the affected institutions, stressing that they are no longer authorised to operate within the country’s financial system.

The warning was contained in a statement issued on Wednesday by the NDIC’s Head of Communication and Public Affairs, Hawwau Gambo, following the CBN’s decision to revoke the licences of the banks over regulatory non-compliance. The NDIC stated that it has been formally appointed as liquidator under the provisions of the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023, mandating it to wind down the affected institutions and safeguard depositors’ funds.

The corporation further explained that it has begun the liquidation process by taking possession of the failed banks, while verification of depositors’ claims is ongoing ahead of insured payouts. It assured customers that eligible depositors will be compensated under the deposit insurance framework and that further updates on the exercise will be communicated as operations progress. The NDIC also warned that any attempt to tamper with the assets, records, or property of the affected banks would attract legal consequences. The CBN had earlier revoked the licences of the 46 microfinance banks after determining that they failed to meet required regulatory standards to continue operations in Nigeria’s banking sector.