The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of concluding the liquidation activities of 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) following their successful acquisition by new owners.

The conclusion of the liquidation process was disclosed in a statement signed by the NDIC Head, Communication and Public Affairs, Hawwau Gambo, on Wednesday.

According to the NDIC, the successful acquisition was carried out under the Purchase and Assumption (P&A) resolution model executed by the corporation.

The NDIC stated that the 89 closed banks were part of the 179 MFBs and 4 PMBs whose banking licenses were revoked by the Central Bank of Nigeria (CBN) on 22-23 May 2023.

Through the ‘Purchase and Assumption’ agreements, 89 new eligible institutions were issued licenses by the CBN to acquire the assets and liabilities of the defunct banks and have since commenced operations under new names.

The NDIC, in its capacity as the liquidator of the defunct banks, said it will, henceforth, be presenting applications to various Judicial divisions of the Federal High Court.

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The corporation stated that the presentation of the applications is necessary to legally conclude the liquidation process in accordance with the provisions of its enabling Act and other relevant laws.

“This is to obtain orders of dissolution for the closed banks and to release the Corporation as Liquidator,” the statement read.

NDIC to Complete Liquidation of 89 Microfinance Banks, Other Banks

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