ABUJA, Nigeria (VOICE OF NAIJA)-The Nigeria Deposit Insurance Corporation (NDIC) has begun steps to conclude the liquidation of 89 defunct Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) following their acquisition by new owners under the Purchase and Assumption (P&A) model implemented by the Corporation.
In a statement, the Head of Communication and Public Affairs at the NDIC, Hawwau Gambo, said the 89 banks were part of the 179 MFBs and four PMBs whose licences were revoked by the Central Bank of Nigeria (CBN) on May 22 and 23, 2023.
She recalled that under the purchase and assumption arrangement, the CBN granted licences to 89 qualified institutions to take over the assets and liabilities of the failed banks, which have since resumed operations under new identities.
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However, to formally complete the liquidation process in line with its enabling Act and other applicable laws, the NDIC, acting as liquidator of the closed banks, will file applications at various divisions of the Federal High Court to obtain dissolution orders and secure its discharge as liquidator, Gambo said.