The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of concluding the liquidation of 89 microfinance banks (MFBs) and primary mortgage banks (PMBs), marking the final phase of the resolution of the institutions whose licences were earlier revoked.
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The development follows the revocation of licences of 179 MFBs and four PMBs by the Central Bank of Nigeria (CBN) in May 2023, after which selected institutions acquired the assets and liabilities of 89 of the defunct banks under a purchase and assumption arrangement, the NDIC said.
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Under the arrangement, new operators were issued licences to take over the operations of the affected institutions, which have since resumed business under different names across several states.
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The NDIC said it would, in its capacity as liquidator, approach the Federal High Court to obtain orders for the dissolution of the defunct banks and its discharge as liquidator, in line with its enabling law and other relevant provisions.
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‎The affected institutions are largely microfinance banks operating across multiple states, including Lagos, Anambra, Ogun, Osun, Ondo, Akwa Ibom, Oyo, FCT, Kaduna, Delta, Edo and Kano, reflecting the spread of small-scale lenders within the financial system.
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The move signals the conclusion of a resolution process initiated after the regulatory action taken in 2023, with the transfer of assets and liabilities already completed and successor institutions in operation.