The Nigeria Deposit Insurance Corporation (NDIC) has started finalising the liquidation of 89 closed Microfinance and Primary Mortgage banks after their takeover by new owners.
The corporation disclosed this in a statement signed on Wednesday by its Head of Communication and Public Affairs, Mrs Hawwau Gambo.
NDIC said this action involves implementing the Purchase and Assumption (P&A) resolution model.
It explained that the Central Bank of Nigeria (CBN) revoked the licences of 179 MFBs and four PMBs on May 22 and 23, 2023, and identified the affected institutions.
According to the corporation, the CBN subsequently licensed 89 new eligible institutions under the P&A arrangement to assume the assets and liabilities of the defunct banks.
It noted that the new banks have already begun operating under different names.
“To complete the liquidation, NDIC, acting as liquidator, will file applications in different divisions of the Federal High Court to obtain orders dissolving the closed banks and to formally discharge itself as liquidator,” the statement said.
NDIC added that it aligns with the provisions of its enabling Act and other relevant laws governing bank resolution in the country.
The corporation said this procedure ensures that closed banks are properly dissolved and helps safeguard the financial system’s stability.
It reiterated its commitment to protect depositors and sustain public confidence in the banking sector.
The affected banks operate across several states, including Lagos, Anambra, Oyo, Kaduna, Kano, and the Federal Capital Territory.