The Nigeria Deposit Insurance Corporation (NDIC) has commenced the final phase of winding down 89 defunct Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) across the country, following their acquisition by new operators under its resolution framework.
The move comes after the Central Bank of Nigeria (CBN) revoked the licences of 179 microfinance banks and four primary mortgage banks in May 2023 as part of efforts to sanitise the financial sector.
Under the Purchase and Assumption (P&A) model, 89 new institutions were subsequently licensed to take over the assets and liabilities of the affected banks and have since begun operations under new identities.
NDIC, acting as liquidator, says it will now approach various divisions of the Federal High Court to obtain formal orders dissolving the defunct institutions and formally discharge the Corporation from its liquidation responsibilities in line with its enabling law.
READ ALSO:
- 95 Princes, Princesses Indicate Interest in Awujale Stool
- NDIC Declares ₦24.3bn Second Liquidation Dividend for Heritage Bank Depositors
- NDIC, CIBN Deepen Partnership to Tackle Emerging Financial Sector Risks
A breakdown shows Lagos State has the highest number of affected institutions with 27 banks, followed by Osun with seven, Anambra with six, and the Federal Capital Territory with five. Akwa Ibom, Ogun, and Adamawa recorded four each, while Oyo, Kaduna, Edo, and Niger have three each. Benue, Delta, Imo, and Ondo recorded two each, while Abia, Ekiti, Enugu, Rivers, Plateau, Nasarawa, Kano, Kwara, Jigawa, and Katsina recorded one each.
NDIC says the exercise is aimed at bringing final closure to the resolution process while ensuring depositors’ interests are protected and financial system stability is maintained. It added that the P&A arrangement has ensured continuity of banking services in affected locations, as acquiring institutions have fully taken over operations of the defunct banks.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.