NDIC Disburses N1.48 Billion to 10,312 Depositors of Failed Microfinance Banks

• MD says service excellence, technology, stronger processes central to depositor protection

Deji Elumoye in Abuja

Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, yesterday disclosed it has paid N1.48 billion to 10,312 depositors of 47 recently closed microfinance banks (MFBs).

He said payment, which had been made as of July 31, 2026, covered depositors of the 47 failed MFBs following the revocation of their operating licences by the Central Bank of Nigeria (CBN).

He spoke at the 2026 Customer Service Week celebration in Abuja, with the theme, “The Extra Mile” which was hosted at the NDIC headquarters in Abuja.

Sunday said the payout was facilitated by the deployment of Bank Verification Number (BVN) validation through the Nigeria Inter-Bank Settlement System (NIBSS) to identify affected depositors and locate their alternative accounts in other banks, enabling payments without the cumbersome processes traditionally associated with claims.

According to him, the corporation’s responsibility went beyond policies and procedures, stressing that the quality of its engagement with depositors and other stakeholders was equally critical to sustaining confidence in the financial system.

He said NDIC’s role was ultimately about ensuring that individuals and businesses could continue to have confidence in financial institutions to safeguard their funds, facilitate transactions and support investment and economic activity.

He said, “The importance of our role extends beyond the banking sector as a stable and dependable financial system is essential to the health of the wider economy.”

The NDIC boss said the corporation had therefore embraced the concept of going the extra mile by continuously reviewing its processes and adopting technology to improve the experience of depositors and other stakeholders.

He identified the recent NDIC ASCENDS restructuring programme as one of the initiatives designed to strengthen the corporation’s structures, improve processes, enhance collaboration and leverage technology and data to make its operations more efficient and responsive.

The NDIC chief executive also disclosed it had undertaken a comprehensive review of its strategic plan, resulting in a refreshed mission, strategic themes, objectives and initiatives, as well as a new set of core values captured in the acronym EPIIC — Excellence, Professionalism, Integrity, Innovation and Collaboration.

He said the initiatives were intended to provide both a roadmap and cultural foundation for the corporation to deliver its mandate more effectively.

Sunday stressed that customer service should not be regarded as the responsibility of a particular department, insisting that every employee of the Corporation was a service provider.

He said, “Whether we interact directly with depositors, stakeholders and the public, or provide support to colleagues within the corporation, our actions contribute to the experience people have with the Corporation.”

He added that NDIC’s recent efforts to accelerate payments to depositors of failed financial institutions demonstrated the practical meaning of its commitment to service excellence.

The NDIC had in recent years increasingly relied on digital infrastructure to speed up reimbursement following bank failures.

Its current approach involves using BVN and NIBSS infrastructure to identify depositors and automatically credit verified alternative accounts, while depositors without the required digital linkages are required to complete verification and claims processes.

The corporation had also continued to pay uninsured deposits through liquidation dividends, using proceeds from the recovery of debts and the realisation of assets of failed institutions.

For Heritage Bank, which was closed in June 2024, the NDIC reported that it had paid N54.23 billion to 715,529 insured depositors as of July 31, 2026, while continuing efforts to resolve outstanding claims.

It had also declared over N71.27 billion in liquidation dividends for uninsured depositors from recoveries and asset realisation.

Sunday said the corporation’s broader objective was to ensure that service excellence became embedded in its daily operations rather than being limited to the annual Customer Service Week.

He urged staff to demonstrate professionalism, responsiveness, empathy, integrity, accountability and excellence in their dealings with depositors and other stakeholders.

He said the week should serve as an opportunity for staff to learn, exchange ideas and develop innovative approaches to raising service standards across the corporation.

“Service excellence is not a one-week activity,” he said, stressing that the commitment must continue in every department, zone, unit and office and at every level of the organisation.

The NDIC boss said the corporation remained committed to improving its capacity to protect depositors and preserve confidence in the banking system, adding that its staff remained central to achieving those objectives.

He said the combination of stronger structures, improved processes, technology and a service-oriented workforce would enable the corporation to respond more effectively whenever financial institutions fail.