The Nigeria Deposit Insurance Corporation (NDIC) has begun the final stage of liquidating 89 defunct Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) whose operations were transferred to new owners under its Purchase and Assumption (P&A) framework.
In a statement issued on April 15, 2026, and signed by its Head of Communication and Public Affairs, Hawwau Gambo, the corporation said the process follows the successful resolution of the affected institutions, whose licences were revoked by the Central Bank of Nigeria (CBN) in May 2023.
The 89 banks were part of a larger group of 179 microfinance banks and four primary mortgage banks shut down by the CBN on May 22 and 23, 2023, as part of a sweeping effort to clean up the financial system and protect depositors.
Through the P&A agreements, the CBN issued new licences to 89 eligible institutions to take over the assets and liabilities of the failed banks. These new entities have since commenced operations under fresh names, ensuring continuity of services and safeguarding customer funds.
“With the resolution phase substantially completed, the NDIC, as Liquidator, will now present 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 statement explained.
The affected institutions are spread across several states, including Lagos, Anambra, Akwa Ibom, Ogun, Oyo, Kaduna, Kano, and the Federal Capital Territory.
Notable transitions include Arise Microfinance Bank Limited, now operating as Shine Microfinance Bank Limited in Lagos; Banccorp Microfinance Bank Limited, which has become Bloc Microfinance Bank Limited; and Credit Afrique Microfinance Bank Limited, rebranded as Kaizen Microfinance Bank Limited.
The NDIC emphasised that the P&A transactions ensured seamless continuity of banking services while protecting depositors and maintaining overall financial system stability.
The move to formally wind up the defunct entities marks the final legal step in a major cleanup exercise that began nearly three years ago. It signals the end of an era for the failed institutions and paves the way for a cleaner, more resilient microfinance and mortgage banking landscape in Nigeria.
The development is expected to boost confidence in the sector by demonstrating the regulator’s commitment to decisive action when institutions fail to meet minimum standards, while ensuring that customers and the broader economy are shielded from systemic risks.
