NDIC MOVES TO WRAP UP LIQUIDATION OF 89 FAILED MICROFINANCE AND MORTGAGE BANKS

NDIC MOVES TO WRAP UP LIQUIDATION OF 89 FAILED MICROFINANCE AND MORTGAGE BANKS
By prince Benson Davies

The Nigeria Deposit Insurance Corporation (NDIC) has begun the final phase of winding down 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) whose assets and liabilities have been taken over by new operators.

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. Through the Purchase and Assumption agreements, 89 new eligible institutions were issued licenses by the CBN, to acquire the assets and liabilities of the defunct banks and have since commenced operations under new names.

In order 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.