NDIC begins final liquidation process for 89 closed microfinance, primary mortgage banks

The Nigeria Deposit Insurance Corporation (NDIC) has commenced formal proceedings to conclude the liquidation of 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs), following their resolution under the Purchase and Assumption (P&A) framework.

These institutions were among 179 MFBs and four PMBs whose operating licences were revoked by the Central Bank of Nigeria (CBN) on May 22 and 23, 2023. That revocation was part of broader reforms aimed at cleaning up the financial services sector and addressing weak balance sheets.

Under the resolution structure, 89 eligible successor institutions were licensed by the CBN to take over the assets and liabilities of the defunct banks.

The acquiring entities have since resumed operations under new names, ensuring continuity for customer accounts and reducing systemic disruption.

With the transition phase now complete, the NDIC—acting as statutory liquidator—has moved to the final legal stage of winding down the affected institutions.

This involves filing applications before various divisions of the Federal High Court to obtain dissolution orders and formally discharge the Corporation from its liquidation mandate.

This development marks a significant step in Nigeria’s evolving bank resolution framework, which increasingly favours structured interventions over disorderly collapses.

It also highlights the growing reliance on Purchase and Assumption transactions as a tool to protect depositors, preserve financial stability, and ensure an orderly exit for failed institutions from the banking sector.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled: Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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