The Nigeria Deposit Insurance Corporation (NDIC) has stated that it has begun the process of concluding the liquidation of 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) following their acquisition by new owners.

The corporation disclosed this in a statement on Wednesday, signed by its Head of Communication and Public Affairs, Mrs Hawwau Gambo.

NDIC said the action followed the successful execution of the Purchase and Assumption (P&A) resolution model.

It explained that the affected institutions 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.

According to the corporation, under the P&A arrangement, 89 new eligible institutions were subsequently licensed by the CBN to assume the assets and liabilities of the defunct banks.

It noted that the new banks had since commenced operations under different names.

“To legally conclude the liquidation process, the NDIC, in its capacity as liquidator, will file applications at various divisions of the Federal High Court for orders of dissolution of the closed banks and its discharge as liquidator,” the statement said.

NDIC added that the move was in line with provisions of its enabling Act and other relevant laws guiding bank resolution in the country.

The corporation said the exercise would ensure proper closure of the defunct institutions while safeguarding financial system stability.

It reiterated its commitment to protecting depositors and sustaining public confidence in the banking sector.

The News Agency of Nigeria (NAN) reports that the affected banks were located across several states, including Lagos, Anambra, Oyo, Kaduna, Kano and the Federal Capital Territory.