NDIC moves to liquidate 87 microfinance, mortgage banks

The Nigerian Deposit Insurance Corporation (NDIC) has announced plans to seek a court order to dissolve 87 microfinance and primary mortgage banks across Nigeria.

This follows the expiration of a 30-day notice issued by the NDIC on August 23, 2024.

In a public notice, the NDIC, acting as the liquidator, stated that it would apply to the Federal High Court for dissolution orders for the closed banks and to release the Corporation from its role as liquidator.

The NDIC cited reasons for the action, including that some banks were either not located or had undertaken self-liquidation.

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Of the 87 financial institutions affected, 62 are microfinance banks, and 25 are primary mortgage banks. The NDIC reported that 80 of these institutions had their licenses revoked due to being untraceable, while the remaining 8 banks opted for self-revocation.

The majority of the affected banks are in Lagos State, with 51 institutions listed, while 16 are located in Abuja, the Federal Capital Territory. Rivers State has five affected microfinance banks, Kogi has three, and Bayelsa and Delta states have two each.

Edo State’s affected banks include Cubic Microfinance Bank and Lofty Height Microfinance Bank. Akwa Ibom, Kwara, Ondo, Osun, and Oyo states each have one affected bank.