The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to approach various divisions of the Federal High Court to obtain dissolution orders for 89 Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) that have been successfully taken over by new investors under its Purchase and Assumption (P&A) resolution framework.
The banks were part of a wider set of 179 Microfinance Banks and four Primary Mortgage Banks whose operating licences were revoked by the Central Bank of Nigeria in May 2023 as part of a broader financial sector cleanup aimed at strengthening stability and restoring public confidence in the banking system.
According to the NDIC, the affected 89 institutions have already been successfully transferred to new eligible investors through the Purchase and Assumption arrangement, a resolution mechanism designed to ensure continuity of banking services while protecting depositors.
Under the arrangement, the assets and liabilities of the closed institutions were acquired by newly licensed entities approved by the CBN, allowing them to continue operations under new names and management structures.
The Corporation stated that the development now paves the way for it to conclude its role as liquidator for these institutions, following the successful completion of asset transfer and operational handover.
NDIC said it will now seek formal dissolution orders from the Federal High Court to legally close out the resolved institutions, marking the final phase of the liquidation process.
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The Corporation explained that this legal step is necessary to officially discharge its responsibilities and ensure full compliance with statutory requirements governing bank liquidation in Nigeria.
Once granted, the orders will effectively terminate the legal existence of the affected entities, following the completion of all P&A transactions.
As part of the restructuring process, the Central Bank of Nigeria issued operating licences to the acquiring institutions, allowing them to take over and continue banking operations seamlessly.
Many of the newly established banks have already begun operations under new brand identities, serving customers in various states across the country while maintaining continuity of financial services.
The transition covers institutions spread across multiple regions, including Lagos, Ogun, Oyo, Anambra, Edo, Rivers, Kaduna, Kano, and the Federal Capital Territory, among others.
The revocation of licences in 2023 formed part of ongoing regulatory efforts to sanitise Nigeria’s financial services sector, particularly the microfinance and mortgage banking segments, which have faced longstanding challenges related to governance, capital adequacy, and operational viability.
Officials say the P&A resolution model has helped reduce systemic disruption by ensuring that depositors retain access to their funds and services, while also enabling stronger institutions to take over weakened ones.
With 89 institutions successfully transitioned, NDIC’s planned court applications represent the final administrative step in closing out the defunct banks under the P&A framework.
Financial sector analysts say the move reflects a broader shift toward more structured and investor-driven resolution mechanisms, designed to improve efficiency, protect depositors, and strengthen confidence in Nigeria’s financial system.
The Corporation is expected to continue coordinating with the CBN and acquiring institutions as it completes the legal and operational closure of the remaining resolved entities.