NDIC Moves to Conclude Liquidation of 89 Failed Banks

The Nigeria Deposit Insurance Corporation (NDIC) has begun the final liquidation of 89 failed microfinance and mortgage banks, following their acquisition by new investors.

In a statement signed by NDIC’s Head of Communication, Hawwau Gambo, the corporation said the move is part of efforts to formally wind down the defunct institutions after resolution through the Purchase and Assumption (P&A) model.

The affected banks were among 179 microfinance banks and four mortgage banks whose licences were revoked by the Central Bank of Nigeria (CBN) in May 2023.

Under the framework, new investors assumed their assets and liabilities and have since resumed operations under new names.

“The NDIC, in its capacity as liquidator, 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,” the statement said.

The NDIC also published a detailed list of the affected institutions and their successor banks, spanning states including Lagos, Anambra, Kano, Rivers, and the FCT.

Examples include Mouau Vasmucs Microfinance Bank, Eduek Microfinance Bank, Ini Microfinance Bank, Nsehe Microfinance Bank, Awka Microfinance Bank, and Enugwu-Ukwu Microfinance Bank, among many others.

The P&A model allows healthy financial institutions to assume deposits and certain liabilities of failed banks, ensuring continuity of services for customers while protecting depositors.

Analysts say the move underscores NDIC’s role in safeguarding financial stability, but stress that stronger oversight and governance reforms are needed to prevent future bank failures.