NDIC moves to wind down 89 failed banks
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the final phase of winding down 89 defunct Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) across the country following their acquisition
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the final phase of winding down 89 defunct Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) across the country following their acquisition by new operators under its resolution framework, it emerged yesterday.
The Corporation said the move follows the earlier revocation of licences by the Central Bank of Nigeria (CBN) in May 2023, which affected 179 microfinance banks and four primary mortgage banks.
Under the Purchase and Assumption (P&A) model, according to Hawwau Gambo, the Head of Communication and Public Affairs, in a statement, 89 new institutions were subsequently licensed to take over the assets and liabilities of the failed banks and have since commenced operations under new identities.
NDIC, acting as liquidator, the statement noted, will now approach various divisions of the Federal High Court to obtain formal orders dissolving the defunct entities and discharging the Corporation from its liquidation responsibilities, in line with its enabling law.
A breakdown of the affected institutions shows that Lagos accounts for the highest number, with 27 banks undergoing the process.
This is followed by Osun with seven, Anambra with six, the Federal Capital Territory (FCT) with five, while Akwa Ibom, Ogun, and Adamawa recorded four each.
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Oyo, Kaduna Edo and Niger recorded three each.
Other states affected include Benue, Delta, Imo, Ondo with two each while Abia, Ekiti, Enugu, Rivers, Plateau, Nasarawa, Kano, Kwara, Jigawa and Katsina recorded one each.
The Corporation said the exercise is aimed at bringing closure to the resolution process while ensuring that depositors’ interests remain protected and that the financial system remains stable.
The NDIC added that the transition under the P&A arrangement has allowed continuity of banking services in affected locations, as the acquiring institutions have fully taken over operations of the defunct banks.
