The Nigeria Deposit Insurance Corporation (NDIC) says it has commenced the liquidation of the 46 microfinance banks (MFBs) whose operating licences were revoked by the Central Bank of Nigeria (CBN).
NDIC, in a statement on Wednesday, said it had been
appointed the official liquidator of the affected institutions pursuant to
Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020
and Sections 55(1) and (2) of the NDIC Act 2023.
Under Section 12(2) of the BOFIA 2020, the corporation
automatically becomes the liquidator of a bank whose licence has been revoked
by the CBN.
In addition, the referenced Section of the NDIC Act 2023
empowers the organisation to take over the failed institution, verify
depositors’ claims, pay insured deposits, recover assets, and oversee the
liquidation process
In the statement on Wednesday, the NDIC said the 46 affected
banks are no longer authorised to carry out banking business in Nigeria.
The corporation warned members of the public against
transacting with the failed lenders or attempting to remove, conceal, retain or
interfere with their assets, records or properties — warning that such actions
could attract legal sanctions.
“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 reads.
The corporation said depositors and the public would be
updated on subsequent steps in the liquidation process.
Earlier, the CBN revoked the operating licences of 46
microfinance banks with effect from July 1, 2026, citing their failure to meet
regulatory requirements for continued operation.
The apex bank said the action, approved by Olayemi Cardoso,
its governor, followed one or more regulatory breaches, including insufficient
assets to meet liabilities, closure of operations without approval, inactivity
and cessation of financial intermediation.
Other regulatory violations are failure to commence
operations within 12 months of obtaining a licence, and failure to maintain
minimum capital funds unimpaired by losses.
The affected institutions include Merchant MFB and Abia SME
MFB in Abia, Crystabel Microfinance Bank in Bayelsa, Winview MFB and CASHA MFB
in the federal capital territory (FCT), Gold MFB, Creditville MFB and
Entrepreneur MFB in Lagos, among others.
The CBN said the revocation forms part of its efforts to
safeguard the stability of the financial system, protect depositors and ensure
compliance with banking regulations.
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