By Seun Ibiyemi
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of concluding the liquidation of 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) following their acquisition by new owners.
This was disclosed in a statement issued on Wednesday and signed by the corporation’s Head of Communication and Public Affairs, Mrs. Hawwau Gambo.
According to the NDIC, the move follows the successful implementation of the Purchase and Assumption (P&A) resolution model, which facilitated the transfer of assets and liabilities of the defunct institutions to newly licensed entities.
The corporation explained that the affected banks were among the 179 microfinance banks and four primary mortgage banks whose licences were revoked by the Central Bank of Nigeria on May 22 and 23, 2023.
It added that 89 new eligible institutions had since been licensed by the apex bank to take over the operations of the failed banks, with the new entities already operating under different names.
“To legally conclude the liquidation process, the NDIC, in its capacity as liquidator, will file applications at various divisions of the Federal High Court for orders of dissolution of the closed banks and its discharge as liquidator,” the statement said.
The corporation noted that the process was in line with its enabling Act and other relevant legal frameworks governing bank resolution in Nigeria.
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NDIC emphasised that the exercise would ensure the orderly closure of the affected institutions while strengthening financial system stability.
It also reiterated its commitment to protecting depositors and maintaining public confidence in the banking sector.
The affected banks were spread across several states, including Lagos, Anambra, Oyo, Kaduna, Kano, and the Federal Capital Territory.
