NDIC Cautions Against Dealings with 46 Closed MFBs

Following the revocation of the operating licenses of 46 Microfinance Banks (MFBs) by the Central Bank of Nigeria (CBN), on July 1, 2026, the Nigeria Deposit Insurance Corporation (NDIC) has cautioned against unauthorized transactions with the closed banks.

The NDIC while noting that it has been appointed as the official Liquidator, pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act 2023, announced that the affected institutions are no longer authorized to conduct banking business in Nigeria.

In a statement issued following the revocation, the NDIC stated that “members of the public are strongly advised against any unauthorized transaction with the closed banks, or any attempt by individuals to remove, conceal, retain, or interfere with the assets, records, or properties of the banks, as this may constitute a violation of the law that could attract appropriate legal consequences.

“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. Depositors and the general public would be duly informed on an ongoing basis on further steps to be taken regarding the liquidation exercise.”