The Nigeria Deposit Insurance Corporation (NDIC) has announced a comprehensive investigation into the directors of 183 banks whose licenses were recently revoked by the Central Bank of Nigeria (CBN). The move, disclosed by NDIC Managing Director Mr. Bello Hassan during a capacity-building workshop in Lagos, underscores the agency’s commitment to combating financial malpractices and ensuring integrity in the Nigerian banking sector.

This initiative involves close coordination between the NDIC, the Economic and Financial Crimes Commission (EFCC) and the Nigerian Police. Mr. Henry Fomah, NDIC’s Head of Legal, reported that 12 prosecution cases are ongoing in various courts, 25 investigations are underway with the Nigeria Financial Intelligence Unit (NFIU), 11 with the EFCC, and five concluded investigations have been forwarded to the Federal Ministry of Justice for advice and prosecution. The goal is to hold accountable those responsible for the collapse of these institutions.

Among the institutions under scrutiny is Eyowo, a digital microfinance bank whose operating license was revoked in May. Customers were initially informed they could no longer send or receive money, though the company assured them of fund security while it sought to regain regulatory approval. Despite these assurances, customer frustration grew over transaction disruptions and withdrawal limitations.

Eyowo co-CEO Yomi Adedeji later announced plans to resume operations under a Payment Solution Service Providers (PSSP) license, claiming 98.8% readiness. However, internal communications revealed the company was effectively winding down operations, dissolving departments and responsibilities, following poor Q1 2023 performance. While Eyowo attempted to reframe its strategy as a fintech platform focused on “financial connectedness and intelligence,” the NDIC officially lists the company as CLOSED, confirming the operational shutdown.

Simultaneously, the NDIC has begun reimbursing depositors of the 179 microfinance banks and four primary mortgage banks affected by the license revocations, including Eyowo. Depositors have been instructed to provide replacement bank accounts for payments, or visit the nearest NDIC office with identification to complete verification. For online verification, depositors can use the NDIC portal.

The NDIC clarified insurance coverage limits: ₦250,000 for microfinance banks and ₦500,000 for primary mortgage banks. For depositors with amounts above these limits, the NDIC is selling assets and recovering debts from the closed banks to repay remaining balances. This proactive approach aims to maintain financial stability, protect depositors, and hold responsible parties accountable.