The Nigeria Deposit Insurance Corporation has commenced moves to formally conclude the liquidation of 89 defunct Microfinance Banks and Primary Mortgage Banks whose operations were successfully transferred to new owners under its Purchase and Assumption framework.

In a statement signed by its Head of Communication and Public Affairs, Hawwau Gambo, the Corporation said the exercise followed the successful resolution of the affected banks, whose licences were revoked by the Central Bank of Nigeria (CBN) in May 2023. NDIC explained that the affected institutions were part of the 179 microfinance banks and four primary mortgage banks shut down by the apex bank on May 22 and 23, 2023, as part of efforts to sanitise the financial system.

According to the Corporation, “through the Purchase and Assumption agreements, 89 new eligible institutions were issued licences by the CBN to acquire the assets and liabilities of the defunct banks and have since commenced operations under new names.” The Corporation noted that the transition ensured continuity of banking services, while safeguarding depositors’ funds and maintaining stability in the financial system.

It added that having substantially completed the resolution phase, the next step is to legally wind down the defunct entities in line with extant laws. “To legally conclude the liquidation process in accordance with the provisions of its enabling Act and other relevant laws, the NDIC, in its capacity as Liquidator, will be presenting applications to various Judicial Divisions of the Federal High Court to obtain orders of dissolution for the closed banks and to release the Corporation as Liquidator,” the statement read.

A breakdown of the list shows that the affected banks cut across several states including Lagos, Anambra, Akwa Ibom, Ogun, Oyo, Kaduna, Kano and the Federal Capital Territory, among others. Notable transitions include Arise Microfinance Bank Limited now operating as Shine Microfinance Bank Limited in Lagos, Banccorp Microfinance Bank Limited now Bloc Microfinance Bank Limited, and Credit Afrique Microfinance Bank Limited now Kaizen Microfinance Bank Limited. Others include Awka Microfinance Bank Limited, now Plantinum Microfinance Bank Limited in Anambra, and ABC Microfinance Bank Limited, which has transitioned to Okada Microfinance Bank Limited in Edo State.