Resolution of Failed Banks: NDIC Seeks Judicial Permission For Final Liquidation of 89 MFBs, PMB

The Nigeria Deposit Insurance Corporation (NDIC) is seeking judicial permission to commence the concluding liquidation activities of 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs).

A statement by the Head, Communication & Public Affairs, Hawwau Gambo, explained that this follows their successful acquisition by new   owners   under   the   Purchase   and   Assumption   (P&A)   resolution   model executed by the Corporation.

NDIC recalled that 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“, the statement added.