The Nigeria Deposit Insurance Corporation has commenced the process of concluding the liquidation of 89 failed microfinance banks and primary mortgage banks following their acquisition by new investors.
The corporation disclosed this in a press statement on Wednesday, noting that the move was part of efforts to formally wind down the defunct institutions after a resolution process. The statement was signed by the NDIC’s Head of Communication and Public Affairs, Hawwau Gambo.
According to the statement, “the Nigeria Deposit Insurance Corporation has commenced the process of concluding the liquidation activities of 89 closed Microfinance Banks and Primary Mortgage Banks following their successful acquisition by new owners under the Purchase and Assumption resolution model.”
The NDIC explained that the affected banks were among the 179 microfinance banks and four primary mortgage banks whose licences were revoked by the Central Bank of Nigeria in May 2023.
It added that under the resolution framework adopted, new investors had taken over the assets and liabilities of the failed institutions and had since resumed operations under new names.
“The 89 closed banks were part of the 179 MFBs and four PMBs whose banking licences were revoked by the Central Bank of Nigeria on May 22 and 23, 2023. 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 statement said.
The corporation stated that the next phase would involve approaching the courts to complete the legal dissolution of the defunct entities.
“In order 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 the liquidator of the defunct banks, 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,” it added.
The NDIC also released a detailed list of the affected institutions alongside their successor banks, spanning several states, including Lagos, Anambra, Kano, Rivers, and the Federal Capital Territory.
Among them are Mouau Vasmucs Microfinance Bank, Eduek Microfinance Bank, Ini Microfinance Bank, and Nsehe Microfinance Bank. Others include Zawadi Microfinance Bank, Akpo Microfinance Bank, Anya Microfinance Bank, Awka Microfinance Bank, and Enugwu-Ukwu Microfinance Bank.
The list also features Isi-Aku Microfinance Bank, Obosi Microfinance Bank, Cub Microfinance Bank, Umejei Microfinance Bank, ABC Microfinance Bank, Ehor Microfinance Bank, and Esan Microfinance Bank. Amoye Microfinance Bank, Goldenfunds Microfinance Bank, Evangel Microfinance Bank, Greenland Microfinance Bank, and Arise Microfinance Bank are also affected.
In addition, Banccorp Microfinance Bank, Bishopgate Microfinance Bank, Bridgeway Microfinance Bank, and Briyth Covenant Microfinance Bank are on the list. Credit Afrique Microfinance Bank, Echo Microfinance Bank, Eyowo Microfinance Bank, and Fiyinfolu Microfinance Bank are also included.
Other affected lenders are Hackman Microfinance Bank, Halmond Microfinance Bank, Manna Microfinance Bank, Manny Microfinance Bank, and Mayfair Microfinance Bank. Mercury Microfinance Bank, Moneywise Microfinance Bank, Network Microfinance Bank, Nuture Microfinance Bank, Onyx Microfinance Bank, and Oros Capital Microfinance Bank are also listed.
The list further includes Peniel Microfinance Bank, Primera Microfinance Bank, Purple Money Microfinance Bank, Stallion Microfinance Bank, Sunrise Microfinance Bank, Surbpolitan Microfinance Bank, Verdant-Capital Microfinance Bank, and Zikado Microfinance Bank.
Also affected are Aiyepe Microfinance Bank, Interland Microfinance Bank, Star Microfinance Bank, Zigate Microfinance Bank, Fasilidapo Microfinance Bank, and Newage Microfinance Bank. Boluwaduro Microfinance Bank, Iba Microfinance Bank, Idese Microfinance Bank, Ola Microfinance Bank, Olofin Microfinance Bank, and Olofin-Owena Microfinance Bank are included.
Osogbo Microfinance Bank, Firstindex Microfinance Bank, Joint Farmers Microfinance Bank, Ologbon Microfinance Bank, and Iwoama Microfinance Bank also made the list. Adamawa Homes & Savings, Mautech Microfinance Bank, Michika Microfinance Bank, Biyama Microfinance Bank, and Musharaka Microfinance Bank are affected as well.
The remaining institutions include Dangizhi Microfinance Bank, Edumana Microfinance Bank, Mainsail Microfinance Bank, Ally Microfinance Bank, and Business Support Microfinance Bank. Daniels Global Microfinance Bank, First Multiple Microfinance Bank, Grassroots Microfinance Bank, Bluewhales Microfinance Bank, and Josad Microfinance Bank are also listed.
Others are BIPC Microfinance Bank, Jamis Microfinance Bank, Narict Microfinance Bank, Fahimta Microfinance Bank, Mabinas Microfinance Bank, New World Microfinance Bank, Northbridge Microfinance Bank, Omu-Aran Microfinance Bank, and Cherish Microfinance Bank.
The Purchase and Assumption model adopted by the corporation allows healthy financial institutions to assume the deposits and certain liabilities of failed banks, while ensuring continuity of services to customers.
