Claims Settlement: How To Claim Your Money From A Liquidated Bank in Nigeria

Last Updated on February 14, 2021 by Ope Quadri

In the 1990s, my grandma had a saving account in Imo Microfinance Bank, a local financial institution based in Ilesa, Osun State.

One day, we woke up to read about the closure of the bank by the Central Bank of Nigeria (CBN).

At the time, she had close to N50, 000. All her savings were all gone. I’m sure she would have been able to claim her savings if she knew where and how to file a claim.

A few years after the incidence, I read about the Nigeria Deposit Insurance Corporation.

NDIC is an agency that manages claim settlement and provides a safety net for depositors and bank customers in Nigeria.

Claims Settlement involves the settlement of claims filed by depositors and other creditors of closed banks.

There are steps and procedure to take so as to collect your money from a closed financial institution.

In case you find yourself in the same situation as my grandma, you don’t have to lose your hard-earned money anymore.

There are ways you can ‘withdraw’ your money from a bank that could no longer meet its monetary obligations.

So, let’s roll…

You are definitely going to be worried when your savings are in a financial institution that just closed shops.

As such, several questions would come to mind, 1) Will I lose my money? 2) How can I collect my money from a bank that liquidated?

I’ll provide an answer to these and the first action you need to take when your bank goes out of business.


What does it mean for a bank to liquidate?

Bank liquidation is a process of permanently closing a financial institution and its branches if it can no longer meet its monetary obligations.

This is done by NDIC by selling off any assets and using the proceeds to settle as many of the bank’s remaining liabilities as possible.

In some cases, the Central Bank of Nigeria (CBN) could revoke the licence of a commercial bank or microfinance bank if it feels that the bank is troubled.

In Nigeria, when a bank liquidates, the NDIC quickly sets up a committee to ensure that depositors collect their money.

They do this by advising depositors to file claim at their branches across the country.

Cases of Bank Liquidation in Nigeria

There are several instances of revocations of licenses, troubled and bank liquidation in Nigeria, most recent is the closure of 42 Microfinance banks in the country.

They had their operating licence revoked by Nigeria’s apex bank effective from November 12, 2020.

The affected microfinance banks are:

  • Solid Base MFB, Ijumu LGA, Kogi State;
  • Ultimate Benefit MFB, Lokoja, Kogi State;
  • Ovidi MFB, Okene, Kogi State;
  • Cafon MFB, Garki II, Abuja;
  • Akcofed MFB, Uyo, Akwa-Ibom State;
  • Gufax MFB, Uyo, Akwa Ibom State;
  • Partnership MFB, Onitsha, Anambra State;
  • ICB MFB, Ilah, Delta State;
  • Onima MFB, Ezinihite Mbaise LGA, Imo State;
  • Future Growth MFB, Utako, Abuja;
  • Bagwai MFB, Bagwai LGA, Kano;
  • Ere City MFB, Oriade LGA, Osun State;
  • Kangiwa MFB, Kangiwa LGA, Kebbi State;
  • Kirfi MFB, Kirfi LGA, Bauchi;
  • Augie MFB, Augie LGA, Kebbi State;
  • Mopa MFB, Mopa, Kogi State;
  • Credit Express MFB, Kakawa Street, Lagos;
  • King Solomon MFB, Western Avenue, Iponri, Lagos;
  • Riggs MFB, Victoria Island, Lagos;
  • Billionaire Blue Bricks MFB, Ajah, Lagos;
  • Hometrust (NATIONS) MFB, Nkwere, Imo State;
  • Ringim MFB, Ringim, Jigawa State;
  • Bigthana MFB, Ali Akilu Road, Kaduna;
  • Rogo MFB, Rogo LGA, Kano State;
  • Makoda MFB, Makoda LGA, Kano;
  • Takai MFB, Takai LGA, Kano State;
  • Hedgeworth MFB, Utako, Abuja
  • Bebeji MFB, Bebeji L.G.A., Kano State;
  • Ajingi MFB, Ajingi LGA, Kano State;
  • Garko MFB, Garko, Kano;
  • Susu MFB, Yaba, Lagos;
  • Korede MFB, Igbotako, Ondo State;
  • Ahetou MFB, Ogba/Egbema/Ndoni LGA, Rivers State;
  • Fufore MFB, Yola, Adamawa State.
  • Unyogba MFB, Ofu LGA, Kogi State;
  • Wapo MFB, Okene, Kogi State;
  • Ibogun MFB, Ifo LGA, Ogun State;
  • Wealthstream MFB, Apapa, Lagos;
  • Aguda Titan MFB, Ogba, Lagos;
  • Sapphire MFB, Uyo, Akwa Ibom State.
  • Metro MFB, Ogba, Ikeja, Lagos;
  • Mountain Top MFB, Trade Fair Complex, Lagos;

Functions of NDIC

Apart from an orderly and efficient closure of the failed banks with minimum disruption to the banking system, here are some of the key responsibilities of the Nigeria Deposit Insurance Commission:

1) To insure all deposit liabilities of licensed banks and other financial institutions.

2) To sanitise the banking sector so as to engender confidence

3) Giving assistance to insured institutions in the interest of depositors

4) Helping banks to avoid damage to public confidence in the banking system;

5) Guaranteeing payments to depositors in case the bank failed to meet its monetary roles

6) Assisting in the formulation and implementation of monetary policies so as to ensure sound banking practice

7) To ensure fair competition among insured banks in Nigeria

Eligibility requirements

  • Proof of account ownership
  • Passbook
  • Cheque book
  • Valid means of identification to enhance their verification
  • BVN
  • An active account number

Steps On How To Get Your Money Back If Your Bank Closed Shops

When you know for certain that your bank has gone bust, here are the steps to take to get your money bank

  • Visit banks’ locations
  • Go with proof of account ownership
  • Valid ID card
  • An official of Claims Resolution Department of NDIC will attend to you
  • Your name would be written on verification list
  • Officials of NDIC will verify you
  • Your record will be entered into claimant database
  • Wait to receive your money in your account

Most times, you are expected to visit the zonal office of NDIC as can be seen below:

NDIC Zonal Offices To Make Claims Contact Phone Numbers
Head, Bank Examination Unit (BEU),

NDIC, Abuja, 447/448,

Constitution Avenue, Central Business District, Garki, Abuja



No. 6, Numan Road,

M.B. 2227, Jimeta,

Yola, Adamawa State






No. 104, Woji Road,

Off Olu Obasanjo Road, GRA,

Port Harcourt, Rivers State



Plot 458, Muhammad Muhammad Street, Off Maiduguri Road, Hotoro, GRA, Kano 09092748222


No.12A, Sulu Gambari Road, Ilorin 08023123185
Plot No. 3, Bank Road, P.M.B. 0207, Bauchi 094601505
No. 2, Gusau Road, Opp. NNPC Mega Station, Sokoto 08033155162
28A/28B, Benoni Hospital Road,

Off Airport Road, GRA, Benin City,

Edo State






NDIC, NECOM House (10th Floor), 15 Marina, Lagos 08166569995


No. 10, Our Lord’s Street,

Independence Layout,




1) It is called claims settlement when you collect your money from a liquidated bank or company

2) All Nigerian banks are insured by the Nigeria Deposit Insurance Commission (NDIC)

3) NDIC will come to your aid when your bank “collapses” or can no longer fulfil its monetary obligations.


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