The Nigeria Deposit Insurance Corporation (NDIC) said it has begun 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 under the Purchase and Assumption (P&A) resolution model executed by the Corporation.

This step follows the Central Bank of Nigeria's (CBN) revocation of operating licenses for 179 MFBs and four PMBs on May 22 and 23, 2023, due to operational failures and non-compliance, Hawwau Gambo, the head of Communications and Public Affairs at NDIC, stated on Wednesday.

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.

"In order to legally conclude the liquidation process in accordance with the provisions of its enabling Act and other relevant laws, the NDIC, in its capacity as the Liquidator of the defunct banks, will be presenting applications to various Judicial divisions of the Federal High Court to obtain orders of dissolution for the closed banks and to release the Corporation as Liquidator." The NDIC stated.

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NDIC has handled hundreds of failed institutions, including 49 deposit money banks, 367 MFBs, and 51 PMBs, with full customer refunds totalling 20 liquidated banks and billions in dividends paid.

After the 2023 revocation, it promptly verified claims and ensured speedy insured deposit payments to affected customers. These steps underscore NDIC's focus on financial stability, debt recovery, and efficient resolution amid Nigeria's regulatory tightening.