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becomes the liquidator of a bank whose licence has been revoked by the CBN.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.