NDIC Pays Billions to Defunct Microfinance and Heritage Bank Depositors

The Nigeria Deposit Insurance Corporation (NDIC) has commenced payouts to insured depositors of 46 microfinance banks after the Central Bank of Nigeria revoked their operating licenses. Speaking at a retreat in Lagos for the House of Representatives Committee on Insurance and Actuarial Matters, Managing Director and CEO Thompson Oludare Sunday stated the agency is acting as provisional liquidator to reimburse guaranteed sums.

To streamline the process, the NDIC partnered with the Nigeria Inter-Bank Settlement System to automate payments using Bank Verification Numbers (BVNs). For uninsured deposits exceeding the guaranteed limit, the agency is selling assets from the failed institutions and pursuing debt recovery from borrowers.

Separately, the NDIC has paid over N106 billion to depositors of the defunct Heritage Bank, whose license was revoked on June 3, 2024, due to financial instability and poor performance. This total includes N55 billion in insured deposits for accounts under N5 million and N51 billion in liquidation dividends. While approximately 700,000 Heritage Bank customers have received payments, the NDIC noted that some legacy account holders remain untraced due to missing BVNs, KYC issues, and name mismatches.