Concerns are mounting following the Central Bank of Nigeria’s decision to revoke the operating licences of 46 microfinance banks, with the President of the Bank Customers’ Association of Nigeria (BCAN), Dr. Uju Ogunbunka, warning that many affected customers may not recover all the money they deposited.
Reacting to the development, Ogunbunka described the mass licence revocation as a significant blow to depositors, businesses and Nigeria’s financial inclusion efforts. The CBN had announced the revocation on July 1, citing regulatory non-compliance by the affected institutions, including Credit Ville Microfinance Bank and Sycamore Microfinance Bank. The Nigeria Deposit Insurance Corporation (NDIC) has since taken over the banks in line with its legal responsibilities.
Speaking exclusively, Ogunbunka explained that while the NDIC would begin reimbursing depositors, customers should understand that only insured deposits are guaranteed. According to him, anyone with funds exceeding the insured limit may have to wait until the liquidation process is completed and may not recover the full amount if the available assets are insufficient.
He warned that many customers who depended on the affected banks for savings, transfers and daily financial transactions could suddenly find themselves without banking services, especially those living in rural communities where alternative financial institutions may not be easily accessible.
Ogunbunka also expressed concern that the incident could discourage both existing and potential customers from embracing the banking system, undermining years of progress made in promoting financial inclusion across Nigeria.
Beyond individual customers, he noted that businesses relying on credit facilities from the affected microfinance banks could face severe financial challenges. According to him, entrepreneurs with existing loan obligations may struggle to secure fresh financing elsewhere, potentially disrupting business operations and economic activities.
The BCAN president further cautioned that the closure of the banks could lead to widespread job losses, warning that rising unemployment may worsen insecurity if affected workers are left without sustainable means of livelihood.
He urged the NDIC to speed up the liquidation and reimbursement process to reduce the hardship on depositors while advising affected customers to open accounts with other licensed financial institutions as quickly as possible to continue their banking activities.
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