NDIC Finalises Liquidation of 89 Microfinance, Mortgage Banks
By Erewunmi Peace
The Nigeria Deposit Insurance Corporation has announced the finalisation of the liquidation process for 89 microfinance and primary mortgage banks across the country.
The affected financial institutions were among those whose operating licences were revoked by the Central Bank of Nigeria in 2023 due to insolvency and regulatory breaches.
According to the NDIC, the liquidation process followed a structured resolution framework, including the transfer of assets and liabilities of the defunct banks to new investors under the Purchase and Assumption arrangement.
The corporation noted that this approach helped protect depositors and ensured continuity of banking services, as many of the affected institutions have since resumed operations under new ownership and management.
The NDIC further explained that the completion of the liquidation process marks a significant step in strengthening confidence in Nigeria’s financial system and maintaining stability within the banking sector.
Industry observers say the move highlights ongoing efforts by regulators to sanitise the financial sector and safeguard depositors from the risks associated with failing financial institutions.
