The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of concluding the liquidation activities of 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) in the country.
The Corporation, in a statement by the Head, Communication & Public Affairs, Hawwau Gambo, disclosed that liquidation process of the affected MFBs and PMBs was sequel to their successful acquisition by new owners under the Purchase and Assumption (P&A) resolution model executed by the it.
According to her, the 89 closed banks were part of the 179 MFBs and 4 PMBs whose banking licences were revoked by the Central Bank of Nigeria (CBN) on May 22nd and 23rd, 2023.
Gambo stated that 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.
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She further clarified: “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.”
