NDIC Liquidates 46 Failed Microfinance Banks, Assures Depositors

BY COBHAM NSA – The Nigeria Deposit Insurance Corporation (NDIC) has swiftly stepped in to implement a controlled winding down of the 46 Micro Finance Banks (MfBs) officially delisted by the Central Bank of Nigeria (CBN), effective Wednesday, July 1, 2026.

By  launching an orderly liquidation of the defunct banks, the Corporation has immediately seized control of their assets to verify eligible accounts and guarantee prompt payouts of insured funds to eligible depositors.

A statement signed by NDIC’s Head of Communication and Public Affairs Department, Hawwau Gambo, said; “Following the revocation of the operating licenses of 46 Microfinance Banks (MFBs) by the Central Bank of Nigeria (CBN), on July 1, 2026, the Nigeria Deposit Insurance Corporation (NDIC), has been appointed as the official Liquidator, pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act 2023.

“It is in this capacity that the Corporation wishes to inform the depositors of the banks in particular and the general public in general that the affected institutions are no longer authorized to conduct banking business in Nigeria.

“Consequently, 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.”

Explaining that the process for seamless and orderly closure of the failed banks is already in progress, the statement further said; “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 listed the affected MFBs and the states where they operate as follows: