₦200,000 deposit payout for customers of shuttered microfinance banks began in May 2023
- The Nigerian Deposit Insurance Corporation (NDIC) has compensated some customers of 132 microfinance banks whose operating licences were revoked by Nigeria’s Central Bank in May 2023.
- Two of the most prominent banks affected by the CBN action are Eyowo Microfinance Bank, backed by the fintech Softcom, and Purple Microfinance Bank.
- The situation could be a little more complex for customers who had more than ₦200,000—the maximum the NDIC will pay—in their accounts.
The revocation of licenses for 132 microfinance banks by the Central Bank in Nigeria has caused significant disruption and financial loss for customers. The compensation provided by the Nigerian Deposit Insurance Corporation offers some relief, but customers with larger deposits may face challenges in accessing their funds. The situation highlights the need for stronger regulatory oversight and due diligence in the banking sector.
