The Nigeria Deposit Insurance Corporation (NDIC) has commenced the final phase of winding down 89 defunct Microfinance Banks (MFBs) and one Primary Mortgage Bank (PMB), following their successful resolution under the Purchase and Assumption (P&A) model.
- +NDIC moves to conclude liquidation of 89 failed microfinance, mortgage banks
This is according to a release by the Corporation on Wednesday, April 15, 2026, indicating that the institutions have since been taken over by new investors, recapitalised, and are now operating under new identities.
This is according to a release by the Corporation on Wednesday, April 15, 2026, indicating that the institutions have since been taken over by new investors, recapitalised, and are now operating under new identities.
The move comes nearly two years after the Central Bank of Nigeria revoked the licenses of 179 microfinance banks and four mortgage banks in May 2023 as part of efforts to sanitise the financial system.
NDIC said it is now seeking legal closure of the defunct entities by approaching the Federal High Court to obtain dissolution orders and formally discharge itself as liquidator.
This marks the final step in a resolution process aimed at protecting depositors while ensuring continuity of banking services.
NDIC said the process is designed to legally conclude the liquidation of resolved banks while ensuring financial system stability and depositor protection:
In its capacity as the Liquidator of the defunct banks, NDIC said it 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 resolution highlights a broader regulatory effort to strengthen Nigeria’s financial system, particularly within the microfinance segment, which plays a critical role in financial inclusion.
According to NDIC, many of the new entities have adopted modern, fintech-driven branding, signalling a shift toward digital banking models and improved service delivery.
According to the Corporation, the 89 closed banks were part of the 179 MFBs and 4 PMBs whose banking licenses were revoked by the Central Bank of Nigeria (CBN) on May 22nd and 23rd, 2023.
The process also highlights the effectiveness of the P&A model in balancing depositor protection with market stability.
