The Nigerian Deposit Insurance Corporation (NDIC) will, at the expiration of its notice filed on August 23, 2024, approach a federal high court to obtain an order to dissolve 87 microfinance banks and primary mortgage banks in Nigeria.
The corporation disclosed this in a a notice on its website, stating that by its enabling laws, it will, at the expiration of 30 days from the date of the 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 gives reasons for liquidation
The agency gave the reasons for the actions, stating that the affected banks were either not located or embarked on self-liquidation.
About 62 affected financial institutions are microfinance banks, and 25 are primary mortgage banks.
The Central Bank of Nigeria had revoked the licenses of about 80 financial institutions because they were not located, while the other eight banks embarked on self-liquidation.
According to the NDIC notice, 16 banks are located in Abuja, 52 in Lagos, five in Rivers State, three in Kogi State, and two in Bayelsa and Delta States.
Edo state has two affected banks, while Akwa Ibom, Kwara, Ondo, Osun, and Oyo states each have one bank.
The development comes as the corporation said it has made significant strides in compensating about 86% of the total insured deposits.
The remaining 14% of insured deposits have yet to be disbursed, and efforts are ongoing to address various challenges hindering payments.
The NDIC stated this during a recent retreat for the House of Representatives Committee on Insurances and Actuarial Matters in Lagos.
According to reports, the NDIC managing director, Bello Hassan, represented by Emily Osuji, disclosed specific issues delaying the final payments, such as accounts with Post No Debit (PND) instructions imposed by courts or regulatory powers, KYC limitations and customers who have yet to complete necessary verification checks.
