NDIC Moves to Conclude Liquidation of 89 Failed Microfinance, Mortgage Banks
Oru Leonard
The Nigeria Deposit Insurance Corporation (NDIC), has commenced the process of concluding the liquidation of 89 defunct Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) following their successful acquisition by new owners.
The Corporation disclosed that the move comes after the implementation of the Purchase and Assumption (P&A) model, through which eligible financial institutions acquired the assets and liabilities of the failed banks and resumed operations under new identities.
The affected institutions were part of the 179 microfinance banks and four mortgage banks whose operating licences were revoked by the Central Bank of Nigeria (CBN) on May 22 and 23, 2023, as part of regulatory efforts to sanitise the banking sector.
According to the NDIC, a total of 89 new institutions have since been licensed by the CBN to take over the operations of the failed banks, ensuring continuity of banking services and protection of depositors.
To formally conclude the process, the Corporation said it would approach various divisions of the Federal High Court to seek orders dissolving the defunct banks and discharging the NDIC from its role as liquidator.
“The applications are in line with the provisions of our enabling Act and other relevant laws governing bank resolution,” the Corporation stated.
The NDIC also released a comprehensive list of the affected banks and their successors, cutting across several states including Lagos, Anambra, Kano, Kaduna, Rivers, and the Federal Capital Territory.
Some of the notable transitions include the transformation of Bridgeway Microfinance Bank to BWAY Microfinance Bank in Lagos, Awka Microfinance Bank to Plantinum Microfinance Bank in Anambra, and Grassroots Microfinance Bank to MIA Microfinance Bank in Kano.
The Corporation reiterated that the resolution strategy adopted has helped preserve financial stability, protect depositors, and sustain confidence in Nigeria’s banking system.
The latest move signals the final phase in the clean-up of failed financial institutions, as regulators intensify efforts to strengthen the resilience and integrity of the country’s financial sector.
