The Nigeria Deposit Insurance Corporation (NDIC) has taken over the liquidation process of 46 microfinance banks following the revocation of their operating licences by the Central Bank of Nigeria (CBN).
The corporation said it was appointed as the official liquidator under the provisions of the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023.
In a statement, the Head of Communication and Public Affairs at the NDIC, Hawwau Gambo, warned members of the public against carrying out unauthorised transactions involving the affected banks or tampering with their assets, records or properties, stressing that such actions could attract legal consequences.
The NDIC also announced that it had begun the orderly closure of the failed banks and had commenced the verification of depositors to facilitate the payment of insured deposits to eligible customers.
The closure has raised concerns among financial experts over its possible impact on financial inclusion and access to banking services, especially for small businesses, traders and rural communities that rely on microfinance institutions.
President of the Bank Customers Association of Nigeria, Prof. Uju Ogubunka, said the closure of the banks could create gaps in the financial system if other institutions do not fill the void.
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According to him, the affected banks played important roles in providing financial services to underserved communities, and their exit could slow efforts to deepen financial inclusion across the country. nHe, however, acknowledged that the action was necessary to maintain discipline and stability within the banking sector.
The NDIC assured depositors that the liquidation process would follow due process and that payments would be made through the affected banks’ branches in line with existing insurance guidelines. The corporation added that it would continue to provide updates throughout the exercise.
The CBN had on Wednesday revoked the licences of the 46 microfinance banks, with the decision taking effect from July 1, 2026.
The apex bank said the action was approved by its Governor, Mr. Olayemi Cardoso, under the powers granted by the Banks and Other Financial Institutions Act 2020.
According to the CBN, the affected institutions consistently failed to meet key regulatory and operational requirements despite supervisory interventions.
The bank listed the reasons for the revocation to include inadequate assets to meet liabilities, failure to maintain minimum capital requirements, prolonged inactivity, unauthorised closure of business locations, suspension of financial services and failure to begin operations within the stipulated period after obtaining licences.
The CBN said the move forms part of its ongoing efforts to strengthen the financial system, protect depositors and ensure that licensed financial institutions comply with regulatory standards.
Among the affected institutions are NOW NOW Digital Microfinance Bank, Sycamore Microfinance Bank, Creditville Microfinance Bank, OurPass Microfinance Bank, Apple Microfinance Bank, Entrepreneur Microfinance Bank and several others across the country.
