NDIC says banks’ recapitalisation drew ₦4.61tn in fresh capital, as it reveals faster depositor payouts and ₦950bn in remittances.

The Nigeria Deposit Insurance Corporation (NDIC) has revealed that the recently concluded two-year banking sector recapitalisation exercise drew in over ₦4.61 trillion in fresh capital, enhancing the capacities of the 33 banks that met the Central Bank of Nigeria’s revised minimum capital requirements to finance productive sectors of the economy.

Outlining the milestones of NDIC at the Federal Ministry of Finance’s 2026 Q2 Citizens and Stakeholders’ Engagement Session, the Managing Director and Chief Executive Officer, Mr. Thompson Oludare Sunday, further disclosed that the NDIC has remitted over ₦505.53 billion into the Consolidated Revenue Fund since 2023, bringing its cumulative remittance to more than ₦950.52 billion.

Addressing efforts to accelerate depositor reimbursement following the failure of financial institutions, Sunday stated that the corporation paid insured depositors of Heritage Bank within four days of the bank’s closure, while depositors of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc were paid within 72 hours of the revocation of their licences.

What the recapitalisation achieved

The two-year exercise, which concluded recently, was designed to strengthen the capital base of Nigerian banks in line with the Central Bank of Nigeria’s revised minimum capital requirements. With 33 banks meeting the new thresholds, the ₦4.61 trillion in fresh capital injected into the sector is expected to expand lending capacity to productive sectors of the economy, a key objective behind the CBN’s recapitalisation drive.

The scale of the capital raised underscores the depth of investor confidence in Nigeria’s banking sector despite broader macroeconomic headwinds, and positions the recapitalised banks to support larger-ticket financing for infrastructure, manufacturing, and other growth-driving sectors.

Beyond its core deposit insurance mandate, the NDIC highlighted its contribution to government revenue. The corporation’s remittance of over ₦505.53 billion into the Consolidated Revenue Fund since 2023 forms part of a cumulative total exceeding ₦950.52 billion, reflecting the agency’s growing fiscal contribution alongside its regulatory functions.

Faster payouts build depositor confidence

The NDIC’s disclosures on payout speed are significant given the corporation’s mandate to protect depositors when banks fail. Sunday’s confirmation that Heritage Bank depositors were paid within four days and that Aso Savings and Loans Plc and Union Homes Savings and Loans Plc depositors were paid within 72 hours of licence revocation, signals a marked improvement in the corporation’s reimbursement timelines compared to past failures, where payouts have historically taken much longer.

This speed is central to maintaining public trust in the banking system, particularly as Nigeria’s financial sector undergoes structural changes following the recapitalisation exercise. Faster payouts reduce the risk of panic withdrawals and reinforce confidence that depositor funds remain protected even when individual institutions fail.

Context

The disclosures were made at the Federal Ministry of Finance’s 2026 Q2 Citizens and Stakeholders’ Engagement Session, a forum used by government agencies to report on policy implementation and institutional performance. The NDIC’s presentation positioned the corporation’s recent achievements, from the recapitalisation outcome to remittances and depositor payouts — as evidence of strengthened regulatory oversight in Nigeria’s banking sector.

With the recapitalisation exercise now concluded, attention shifts to how the 33 compliant banks deploy their expanded capital base and whether the NDIC’s improved reimbursement timelines will be sustained in the event of future institutional failures.