NDIC Plans to Liquidate 87 Microfinance Banks, Others

Nigerian Deposit Insurance Corporation (NDIC) will at the expiration of its notice released on August 23, 2024, approach a federal high court to grant the order to dissolve 87 microfinance banks and primary mortgage banks in the county.

“NOTICE is hereby given to the General Public that the Nigeria Deposit Insurance Corporation (NDIC) in its capacity as the Liquidator of the under-listed closed Microfinance Banks and Primary Mortgage Institutions, in accordance with the provisions of its enabling law and other relevant laws, will at the expiration of thirty (30) days from the date of this publication present an application to the Federal High Court to obtain dissolution orders of the closed banks and to release/discharge Corporation as Liquidator of the banks,” NDIC stated.

NDIC stated reasons for its actions to include the fact that the affected banks were either not located or embarked on self-liquidation.

According to the banking type, 62 of the affected financial institutions are microfinance banks while 25 are primary mortgage banks. Eighty of these institutions had their licences revoked because they were not located. The balance, 8, embarked on self-revocation.

Sixteen of the affected banks are located in Abuja, the Federal Capital Territory (FCT) while 51 are local in Lagos State, the nation’s commercial capital. Rivers State has five affected microfinance banks, according to the NDIC list.

Three of the affected microfinance banks are in Kogi; two each in Bayelsa and Delta states. The two affected microfinance banks in Edo State are Cubic microfinance Bank and Lofty Height Microfinance Bank.

Akwa Ibom, Kwara, Ondo, Osun and Oyo states have one affected bank each.