The Nigeria Deposit Insurance Corporation (NDIC) has commenced the final phase of liquidating 89 failed microfinance and primary mortgage banks following their acquisition by new investors.
The development comes after the Central Bank of Nigeria (CBN) revoked the licences of several financial institutions in 2023 due to their inability to meet regulatory standards and obligations.
Under a resolution framework adopted by regulators, the affected banks were taken over through the Purchase and Assumption model, allowing new investors to acquire their assets and liabilities. The successor institutions have since resumed operations under new identities, ensuring that customers continue to access financial services without disruption.
As part of the concluding process, the NDIC is set to approach the Federal High Court to obtain orders formally dissolving the defunct banks and releasing the corporation from its role as liquidator.
The move is aimed at strengthening confidence in the banking system, safeguarding depositors, and reinforcing stability within Nigeria’s financial sector, particularly in the microfinance space which supports small businesses and low-income earners.
The corporation noted that the transition has already resulted in the emergence of new institutions across various parts of the country, reflecting ongoing efforts to reform and sanitize the sector.
