The Nigeria Deposit Insurance Corporation (NDIC) has commenced the payment of liquidation dividends to depositors, creditors, and shareholders of Pearl Microfinance Bank, which is presently undergoing liquidation.
This move is aimed at mitigating financial losses suffered by verified stakeholders affected by the closure of the bank.
To access their liquidation dividends, eligible individuals are required to present specific documentation. These include a recent passport photograph, proof of deposit or shareholding such as a passbook or term deposit certificate—and a valid means of identification, including a national ID card or a driver’s license.
In lieu of submitting these documents physically, depositors, creditors, and shareholders have the option of uploading the required documents electronically through the NDIC claims portal.
Furthermore, the NDIC has advised concerned individuals to visit the nearest NDIC office between May 26 and July 4, 2025, to process their claims.
This development is projected to strengthen confidence in Nigeria’s financial system, while supporting ongoing efforts towards banking compensation and financial recovery.
Back in May 2024, the NDIC, in its statutory role as liquidator for failed microfinance banks (MFBs), had invited interested members of the public to participate in the bidding process for assets belonging to these defunct institutions.
The assets offered for sale included furniture, fixtures, fittings, equipment, generators, and motor vehicles, and were made available through public competitive bidding and sealed auctions.
Pearl Microfinance Bank was one of 18 banks listed for asset liquidation, following the revocation of its license by the Central Bank of Nigeria (CBN) in May 2023, alongside 131 other financial institutions.
The CBN had officially announced the revocation of operating licenses for a total of 132 microfinance and primary mortgage banks through a gazetted publication.
According to the apex bank, the decision was taken due to the institutions’ failure to comply with regulatory provisions as outlined in the Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.
The CBN specified that the affected banks had:
Ceased operations for six consecutive months, thereby becoming inactive;
Failed to meet or comply with the conditions under which their licenses were issued; and
Neglected to fulfill the obligations imposed on them by the CBN in accordance with the BOFIA regulations.
The ongoing disbursement of liquidation dividends marks a significant step in Nigeria’s continuing effort to address the aftermath of financial institution failures in an orderly and transparent manner. By compensating verified stakeholders, the NDIC reinforces the integrity of the financial system while sending a strong signal that regulatory agencies remain committed to depositor protection and the structured resolution of failed institutions.
In addition to its liquidation duties, the NDIC continues to provide deposit insurance coverage for licensed banks, thereby ensuring that depositors have a degree of protection in the event of bank distress. Through mechanisms like liquidation dividends and asset auctions, the corporation plays a dual role in both mitigating immediate stakeholder losses and helping to stabilise public confidence in the formal banking sector.
