NDIC begins liquidation after CBN closes 46 microfinance banks
The NDIC has begun liquidating 46 microfinance banks after the CBN revoked their licences for regulatory breaches and capital inadequacy.
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN). The corporation has warned members of the public against transacting with the failed institutions as it begins the verification of depositors and payment of insured deposits.
The NDIC has been appointed the official liquidator of the affected banks pursuant to 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 affected institutions have ceased to operate as licensed banks in Nigeria, and the NDIC has already taken over their assets as part of the statutory liquidation process. Depositors will continue to receive updates as the liquidation progresses. The corporation advised depositors, creditors and the general public to avoid any transactions with the affected banks, stressing that they no longer have the legal authority to conduct banking business.
The announcement follows the CBN’s revocation of the operating licences of the 46 microfinance banks on 1 July 2026, after determining that they no longer met the regulatory conditions required to continue operating as licensed financial institutions. The apex bank cited a combination of regulatory breaches, including inadequate capital, insufficient assets to meet liabilities, prolonged inactivity, unauthorised closure of operations and failure to commence business within the stipulated period. The affected institutions include Tier 1, Tier 2 and State microfinance banks operating across Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra. They include Gold Microfinance Bank, Merchant Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Safegate Microfinance Bank, NOW NOW Digital Microfinance Bank, Bompai Microfinance Bank, Minjibir Microfinance Bank and several others.
The winners: depositors who will receive insured payments. The losers: depositors with funds above the insured limit, employees of the failed banks, and the Nigerian banking system, which loses 46 institutions in a single day.
Bottom Line: Forty-six banks closed in one day. That is not a correction. That is a collapse.