NDIC starts paying customers of 46 closed microfinance banks
The Nigeria Deposit Insurance Corporation (NDIC) has started paying insured deposits to customers of 46 microfinance banks whose licences were revoked by the Central Bank of Nigeria. Thompson Sunday, NDIC’s Managing Director, explained that the corporation is also working to recover loans and sell assets to reimburse those with balances above the insured limit. The NDIC has improved its payment process through a partnership with the Nigeria Inter-Bank Settlement System, allowing automatic payments to depositors with linked Bank Verification Numbers. The same approach has been used for Heritage Bank depositors, though some customers remain untraced due to legacy accounts.
TLDR
- NDIC is paying insured deposits to customers of 46 failed microfinance banks after their licences were revoked.
- The corporation is recovering loans and selling assets to pay depositors with balances above the insured limit.
- Payments are now made automatically to depositors with linked Bank Verification Numbers, reducing delays.
- About 700,000 Heritage Bank customers have received insured deposits using this system, though some legacy account holders are yet to be traced.
- Thompson Sunday emphasized the need for robust supervision and governance alongside recent banking sector recapitalisation.
