The Nigeria Deposit Insurance Corporation announced that it has started the final phase of liquidating 89 micro‑finance banks and primary mortgage banks that were previously closed. The liquidation is being wrapped up after the institutions were purchased by new owners through the Purchase and Assumption (P&A) resolution model that the NDIC administered. The corporation said the acquisition was successful and that the new owners have taken over the assets and liabilities of the banks under the P&A framework. This development follows a directive from the Central Bank of Nigeria, which had earlier mandated the closure and restructuring of troubled micro‑finance and mortgage lenders. By moving to conclude the liquidation, the NDIC aims to clear the outstanding matters tied to the closed banks and facilitate a smoother transition for the new proprietors. The corporation emphasized that the process will be completed in accordance with the regulatory guidelines governing bank resolutions in the country.
The NDIC's move to close out the liquidation of 89 micro‑finance and mortgage banks signals a decisive step toward stabilising a sector that has long struggled with weak governance. By finalising the Purchase and Assumption arrangements, the corporation is attempting to restore confidence among depositors and investors who have been wary of repeated bank failures. Ordinary Nigerians who rely on micro‑finance services, especially in underserved communities, could see improved access to credit as the newly owned banks resume operations under more robust oversight. This action also reflects a broader pattern of regulatory bodies intervening directly to restructure failing financial institutions, a trend that may shape the future landscape of Nigeria's banking sector.
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