By Musa Ibrahim
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of 46 microfinance banks following the revocation of their operating licences by the Central Bank of Nigeria (CBN), assuring depositors that the process of verifying claims and paying insured deposits has already begun.
The action marks one of the largest regulatory interventions in Nigeria’s microfinance banking sector in recent years, underscoring the CBN’s continued efforts to strengthen financial system stability while removing institutions that no longer meet regulatory requirements.
In a statement issued by its Head of Communication and Public Affairs Department, Hawwau Gambo, the NDIC said it was officially appointed as the liquidator of the affected institutions in line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and 55(2) of the NDIC Act 2023.
The appointment followed the CBN’s decision on July 1, 2026, to withdraw the operating licences of the 46 microfinance banks.
With the revocation now in effect, the corporation warned that the affected institutions are no longer authorised to conduct banking business anywhere in Nigeria.
The NDIC also cautioned members of the public against carrying out transactions with the failed banks or attempting to tamper with their assets.
According to the corporation, “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.”
To protect depositors and ensure an orderly resolution process, the corporation said it has immediately taken over the affected institutions and commenced the statutory liquidation process.
“The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors,” the statement said.
The corporation assured customers that additional information would be provided as the liquidation exercise progresses, including procedures for deposit verification and payment.
“Depositors and the general public would be duly informed on an ongoing basis on further steps to be taken regarding the liquidation exercise,” it stated.
The affected institutions span several states across the federation, reflecting the nationwide reach of Nigeria’s microfinance banking industry.
Lagos recorded the highest number of affected banks, including Gold Microfinance Bank, Safegate Microfinance Bank, Supreme Microfinance Bank, Creditville Microfinance Bank, MBAG Microfinance Bank, Verdant Microfinance Bank and Entrepreneur Microfinance Bank.
Kano also accounted for a significant number of licence revocations, including Zain Microfinance Bank, Bompai Microfinance Bank, Ajwa Microfinance Bank, Now Now Digital Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, TOFA Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank and Esteem Microfinance Bank.
Other affected institutions are located across Rivers, Abia, Kwara, Niger, Bayelsa, Kebbi, Ogun, the Federal Capital Territory, Plateau, Oyo, Cross River, Anambra, Kaduna, Benue, Ondo and Osun states.
Although the CBN did not state the specific reasons for each licence withdrawal, such actions are typically taken when financial institutions fail to meet regulatory, prudential or operational requirements prescribed under banking laws.
The intervention is expected to reinforce confidence in Nigeria’s financial system by ensuring that only sound and adequately capitalised institutions continue to operate, while depositors of failed banks receive protection through the deposit insurance framework administered by the NDIC.
