The Nigeria Deposit Insurance Corporation has begun the final steps to conclude the liquidation of 89 failed microfinance banks and primary mortgage banks after their takeover by new investors.
In a statement signed by its Head of Communication and Public Affairs, Hawwau Gambo, the corporation said the move is part of efforts to formally wind down the defunct institutions following a resolution process.
The NDIC explained that the affected banks were among the 179 microfinance banks and four primary mortgage banks whose licences were revoked in May 2023 by the Central Bank of Nigeria.
Under the adopted Purchase and Assumption model, new investors have taken over the assets and liabilities of the failed banks and resumed operations under new identities.
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The corporation noted that the next stage involves seeking legal closure through the courts. It said it would approach different divisions of the Federal High Court to obtain orders dissolving the defunct banks and formally releasing the NDIC from its role as liquidator.
The NDIC also published a comprehensive list of the affected institutions and their successor entities across several states, including Lagos, Anambra, Kano, Rivers, and the Federal Capital Territory.
The Purchase and Assumption framework allows stronger financial institutions to absorb deposits and selected liabilities of failed banks, helping to maintain service continuity for customers while ensuring an orderly resolution process.
