The assurance was contained in a statement issued by the NDIC on Tuesday, shortly after the Central Bank of Nigeria (CBN) announced the withdrawal of the banks’ licences as part of ongoing efforts to strengthen the mortgage subsector and enforce regulatory compliance.
Earlier on Tuesday, the CBN disclosed that it had revoked the licences of the two institutions in line with its statutory powers under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria. The announcement was signed by the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali.
According to the apex bank, the affected mortgage institutions breached multiple regulatory requirements. These included failure to meet the minimum paid-up share capital required for their licence category, inadequate asset levels to meet liabilities, critical undercapitalisation with capital adequacy ratios below prudential thresholds, and persistent non-compliance with directives issued by the CBN.
In response to the licence revocation, the NDIC said it has commenced the liquidation process for both banks in line with Section 55 (1) and (2) of the NDIC Act 2023. The corporation confirmed that verification and payment of insured deposits have already begun.
Under the arrangement, depositors will be paid up to ₦2 million each as insured deposits. The NDIC explained that payments will be made using depositors’ Bank Verification Numbers (BVN) to identify alternate bank accounts into which the insured sums will be automatically credited.
Depositors with balances exceeding ₦2 million will receive the insured portion immediately, while the remaining balances will be paid as liquidation dividends. These payments, the NDIC said, will depend on the sale of the banks’ assets and the recovery of outstanding loans owed to the failed institutions.
“To expedite the settlement of uninsured deposits, the Corporation will commence the sale of the banks’ assets and intensify the recovery of debts,” the NDIC stated.
Affected customers were advised to submit their claims through the NDIC’s online claims portal by completing the digital verification form and providing the required information. Depositors who prefer physical verification were directed to visit the nearest branches of the closed banks between Tuesday, December 16, 2025, and Thursday, December 30, 2025, where NDIC officials will be on hand to assist.
For verification and payment, depositors are required to present proof of account ownership, a valid means of identification—such as a driver’s licence, permanent voter’s card, or national identity card—as well as details of an alternate bank account and their BVN.
The NDIC also advised creditors of the closed banks to submit their claims either online or at the banks’ branches within the same verification period. Payment of liquidation dividends to creditors will begin only after all depositors have been fully settled, in accordance with applicable laws.
Staff of the defunct banks, the corporation added, will be paid from proceeds of asset sales after depositors have been fully compensated, while shareholders will receive any residual payments subject to further asset realisation and debt recovery.
Meanwhile, debtors of the affected mortgage banks were urged to visit the NDIC’s Asset Management Department to regularise and settle outstanding loan obligations.