Failed Banks: NDIC Disburses Billions of Naira to Expectant Customers, Issues Major Update
- The NDIC paid N37.65 billion to depositors of failed banks, including N4.06 billion to insured depositors and N33.59 billion in liquidation dividends
- The corporation also recovered N42.69 billion from debts owed by failed banks, generated N14.72 billion from asset sales and investments
- NDIC said it is using BVN technology to speed up payments to depositors and is working with the CBN to strengthen the banking sector
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that it paid a total of N37.65 billion to customers of failed banks in 2025, including insured deposits and liquidation dividends for uninsured funds.
Speaking on Monday at the second-quarter 2026 Citizens and Stakeholders' Engagement Session organised by the Federal Ministry of Finance in Abuja, the Managing Director of the NDIC, Thompson Sunday, said the corporation disbursed N4.06 billion to 13,446 insured depositors of failed financial institutions during the year.
Source: UGC
He added that an additional N33.59 billion was paid as liquidation dividends to uninsured depositors from proceeds realised through the recovery and disposal of assets belonging to failed banks.
According to Sunday, payments to uninsured depositors are funded by the sale of assets, debt recoveries, and other realisations from liquidated financial institutions.
He further revealed that 698,040 customers of the defunct Heritage Bank have already received reimbursements as the corporation continues its payout process.
Technology, asset recovery strengthen NDIC operations
Sunday noted that the NDIC recovered N42.69 billion from outstanding debts owed by failed banks in 2025, while another N14.72 billion was generated from investments and the disposal of assets.
He said the enactment of the NDIC Act 2023 has significantly strengthened the corporation's authority to intervene in troubled banks, recover assets, and safeguard depositors' funds.
The NDIC boss also highlighted the deployment of technology to accelerate compensation for depositors, explaining that the use of Bank Verification Number (BVN) records has enabled the corporation to identify eligible beneficiaries and process payments more efficiently.
He said the digital approach has substantially reduced delays in reimbursing depositors after the collapse of financial institutions.
Source: UGC
Sunday added that the NDIC currently supervises 914 insured financial institutions in collaboration with the Central Bank of Nigeria (CBN).
He noted that the corporation is also working closely with the apex bank on the ongoing banking sector recapitalisation programme.
According to him, stronger capital buffers across banks will enhance the industry's resilience against financial shocks, increase credit to the private sector, stimulate investment, create jobs, and support sustainable economic growth.
Source: Legit.ng
