The President of the National Association of Nigerian Traders, Ken Ukaoha Ogunbunka, has advised customers of the 46 microfinance banks whose operating licences were recently revoked by the Central Bank of Nigeria not to expect immediate or complete recovery of all their deposits, particularly where account balances exceed the insured limits.
Speaking on the implications of the regulatory action, Ogunbunka explained that while depositors are protected under Nigeria’s deposit insurance framework, reimbursement is subject to the provisions of the law and the financial position of each failed institution. He noted that insured deposits are usually settled first, while customers with balances above the insured threshold may have to wait for the liquidation of the banks’ assets before any additional payments can be made.
He urged affected customers to remain calm and cooperate with the relevant authorities handling the liquidation process. According to him, depositors should gather their account records, identification documents and other relevant banking information to facilitate verification and any compensation process that may follow.
Ogunbunka also called on the Nigeria Deposit Insurance Corporation to ensure that eligible depositors receive their insured funds without unnecessary delays. He stressed that prompt payment would help reduce hardship for individuals and small businesses that relied on the affected microfinance banks for daily financial transactions.
The consumer advocate further encouraged bank customers to pay closer attention to the financial health and regulatory standing of institutions before depositing large sums of money. He said stronger financial literacy and regular regulatory compliance by banks would help improve public confidence in the country’s banking system.
The CBN revoked the licences of the 46 microfinance banks after determining that they had failed to meet key regulatory requirements, including maintaining adequate capital, sustaining operations, and complying with prudential standards. The apex bank said the action forms part of ongoing efforts to strengthen the stability of Nigeria’s financial system and protect depositors.
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