Failed Banks: NDIC commences process to conclude Liquidation of 89 MFBs, PMB

The Nigeria Deposit Insurance Corporation, NDIC, says it has commenced 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.

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A statement by Hawwau Gambo, the Head of Communication & Public Affairs at the NDIC, said the 89 closed banks were part of the 179 MFBs and 4 PMBs whose banking licenses were revoked by the Central Bank of Nigeria (CBN) on May 22nd and 23rd, 2023.

Recall that through purchase and assumption agreements, 89 new eligible institutions were issued licenses by the CBN to acquire the assets and liabilities of the defunct banks. They have since commenced operations under new names.

But 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, Gambo, said.