Court orders sought as successor institutions take over assets under resolution framework….
The Nigeria Deposit Insurance Corporation has commenced the final phase of liquidating 89 defunct Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs), following their acquisition by new owners under its Purchase and Assumption framework.
The affected institutions are among the 179 microfinance banks and four primary mortgage banks whose licences were revoked by the Central Bank of Nigeria on May 22 and 23, 2023, as part of efforts to strengthen regulatory oversight and sanitise the financial system.
Under the resolution arrangement, NDIC facilitated the transfer of assets and liabilities of the failed banks to 89 newly licensed institutions approved by the apex bank. These successor entities have since begun operations under new identities, ensuring continuity of banking services and safeguarding depositors’ funds.
In a statement issued on April 8, 2026, the corporation’s Head of Communication and Public Affairs, Hawwau Gambo, said NDIC would approach various divisions of the Federal High Court to secure orders formally dissolving the defunct banks and discharging the corporation from its role as liquidator.
The corporation noted that the move is in line with provisions of its enabling Act and other relevant laws governing bank resolution and liquidation in Nigeria.
NDIC added that the list of the closed institutions and their corresponding acquiring entities forms part of the broader process aimed at bringing the liquidation exercise to a legal conclusion.
The development represents a key milestone in NDIC’s mandate to promote financial system stability and ensure the orderly resolution of failed financial institutions while protecting depositors and maintaining public confidence in the banking sector.
