The Nigeria Deposit Insurance Corporation (NDIC) paid a total of N37.65 billion to customers of failed banks in 2025, covering both insured deposits and liquidation dividends for uninsured funds. The disclosure was made on Monday at the second-quarter 2026 Citizens and Stakeholders' Engagement Session organised by the Federal Ministry of Finance in Abuja.
Breakdown of Payments to Depositors
NDIC Managing Director Thompson Sunday announced that the corporation disbursed N4.06 billion to 13,446 insured depositors of failed financial institutions during the year. Additionally, 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. Sunday explained that payments to uninsured depositors are funded by the sale of assets, debt recoveries, and other realisations from liquidated institutions.
Furthermore, 698,040 customers of the defunct Heritage Bank have already received reimbursements as the corporation continues its payout process.
Asset Recovery and Technology Integration
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 emphasised that 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. The use of Bank Verification Number (BVN) records has enabled the corporation to identify eligible beneficiaries and process payments more efficiently. According to Sunday, this digital approach has substantially reduced delays in reimbursing depositors after the collapse of financial institutions.
Collaboration with CBN and Recapitalisation Programme
Sunday added that the NDIC currently supervises 914 insured financial institutions in collaboration with the Central Bank of Nigeria (CBN). The corporation is working closely with the apex bank on the ongoing banking sector recapitalisation programme. He stated that 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.
