The Nigeria Deposit Insurance Corporation has begun paying insured deposits to customers of 46 microfinance banks whose licences were revoked by the Central Bank of Nigeria.
Managing Director Thompson Sunday disclosed this at a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.
He said the corporation moved quickly after being appointed provisional liquidator of the affected institutions.
The NDIC is also recovering outstanding loans and disposing of assets belonging to the failed banks to raise funds for uninsured depositors.
Sunday said the corporation was using Bank Verification Number records in collaboration with the Nigeria Inter-Bank Settlement System to identify depositors and credit eligible accounts automatically.
He did not disclose how many customers of the 46 microfinance banks had been paid.
Providing an update on Heritage Bank, Sunday said about 700,000 depositors had received insured payments.
The corporation is still trying to trace customers with incomplete or outdated records, particularly accounts opened before the introduction of the Bank Verification Number.
He urged unidentified depositors to contact the corporation and provide the information required to validate their claims.
House Committee Chairman Ahmadu Jaha said banking recapitalization must be supported by stronger supervision, effective deposit insurance, corporate governance and closer coordination among financial regulators.
He also warned that the expansion of financial technology had created new risks involving cybersecurity, digital fraud, operational resilience and consumer protection.
