NDIC Moves to Finalise Closure of 89 Failed Banks Through Court Orders

The Nigeria Deposit Insurance Corporation (NDIC) has initiated steps to conclude 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 NDIC, the development follows the successful implementation of the Purchase and Assumption (P&A) resolution model.
The corporation explained that the affected institutions were among the 179 microfinance banks and four primary mortgage banks whose licences were revoked by the Central Bank of Nigeria (CBN) on May 22 and 23, 2023.
Under the P&A arrangement, NDIC stated that 89 new eligible institutions were subsequently licensed by the CBN to take over the assets and liabilities of the defunct banks.
It added that these newly licensed banks have since commenced operations under different names.
“To formally conclude the liquidation process, the NDIC, acting as liquidator, will file applications at various divisions of the Federal High Court seeking orders for the dissolution of the closed banks and its discharge as liquidator,” the statement said.
NDIC noted that the move aligns with the provisions of its enabling Act and other relevant laws governing bank resolution in the country.
The corporation further stated that the exercise would ensure the proper closure of the defunct institutions while maintaining stability within the financial system.
It reaffirmed its commitment to safeguarding depositors and sustaining public confidence in the banking sector.
Reports indicate that the affected banks were spread across several states, including Lagos, Anambra, Oyo, Kaduna, Kano, and the Federal Capital Territory.