The Nigeria Deposit Insurance Corporation (NDIC) has begun the process to conclude the liquidation activities for 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs). This step follows their successful acquisition by new owners.

The conclusion of these liquidation processes was announced in a statement signed by the NDIC Head of Communication and Public Affairs, Hawwau Gambo, on Wednesday.

According to the NDIC, the acquisitions were executed under the Purchase and Assumption (P&A) resolution model. The 89 closed banks were part of a larger group of 179 MFBs and 4 PMBs whose banking licenses were revoked by the Central Bank of Nigeria (CBN) on May 22-23, 2023.

Through the Purchase and Assumption agreements, 89 new eligible institutions received licenses from the CBN. These entities are now authorized to acquire the assets and liabilities of the defunct banks and have already commenced operations under new names.

The NDIC, acting as the liquidator for the defunct banks, stated that it will now present applications to various Judicial divisions of the Federal High Court. This action is necessary to legally conclude the liquidation process in accordance with the NDIC's enabling Act and other relevant laws.

The corporation indicated that these applications are to obtain court orders for the dissolution of the closed banks and to formally release the NDIC as the Liquidator.