About 53 deposit money banks had so far closed down business in Nigeria between 1994 to 2018 following their inabilities to meet their financial obligations and resultant withdrawal of their operating licenses by the Central Bank of Nigeria. There have been incessant liquidation of commercial and microfinance banks in the past. This necessitated the establishment of the Nigeria Deposit Insurance Corporation (NDIC), which provides insurance to bank deposits.
Also, Assets Management Corporation of Nigeria, AMCON, was established in July 2010 with a mandate to take over eligible banks assets from eligible financial institutions at a fair value and put the assets to economic use in a profitable manner. Eligible banks are those banks that are being mismanaged and risk collapse.
What Happens in Event of Winding Up of a Bank in Nigeria?
Bank insurance is a guarantee by the National Deposit Insurance Corporation (NDIC) of deposits in a bank. Bank insurance helps protect individuals who deposit their savings in banks against deposit money banks (DMBs) insolvency. When a bank is liquidated, each depositor is insured up to N500,000 per bank. NDIC maximum coverage limits are N500,000 per depositor in commercial, merchant, and non-interest banks, primary mortgage banks, and mobile money operator, and N200,000 per depositor in microfinance banks. The NDIC through the AMCON disposes the assets of the bank, and pays a dividends to depositors, creditors, shareholders of the defunct bank.
List of Closed Banks in Nigeria
1. Alpha Merchant
Date: 8 September, 1994
2. Financial Merchant Bank
Date: 21 January 1994
3. Kapital Merchant Bank
Date: 21 January 1994
4. United Commercial Bank
Date: 8 September 1994
5. Republic Bank
Date: 29 June 1995
6. Allied Bank of Nigeria
Date: 16 January, 1998
7. Abacus Merchant Bank
Date of Liquidation: 16 January, 1998
8. ABC Merchant Bank
Date: 16 January, 1998
9. Amicable Bank of Nigeria
Date: 16 January, 1998
10. Century Merchant Bank
Date: 16 January, 1998
11. Commerce Bank
Date: 16 January, 1998
12. Commercial Trust Bank
Date: 16 January, 1998
13. Continental Merchant Bank
Date: 16 January, 1998
14. Coop & Merchant Bank
Date: 16 January, 1998
15. Credite Bank Nigeria
Date: 16 January, 1998
16. Crown Merchant Bank
Date: 16 January, 1998
17. Great Merchant Bank
Date: 16 January 1998
18. Group Merchant Bank
Date: 16 January 1998
19. Highland Bank of Nigeria
Date: 16 January 1998
20. Icon Merchant Bank
Date: 16 January 1998
21. Lobi Bank of Nigeria
Date: 16 January 1988
22. Mercantile Bank of Nigeria
Date: 16 January 1998
23. Merchant Bank of Africa
Date: 16 January 1998
24. Nigeria Merchant Bank
Date: 16 January 1998
25. North South Bank
Date of Liquidation: 16 January 1998
26. Pan African Bank
Date of Liquidation: 16 January 1998
27. Pinnacle Commercial Bank
Date: 16 January 1998
28. Prime Merchant Bank
Date: 16 January 1998
29. Progress Bank of Nigeria
Date of Liquidation: 16 January 1998
30. Victory Merchant Bank
Date: 16 January 1998
31. Ivory Merchant Bank
Date: 20 December 2000
32. Royal Merchant Bank
Date: 16 January 2000
33. Premier Commercial Bank
Date: 20 December 2000
34. Rims Merchant Bank
Date: 20 December 2000
35. Peak Merchant Bank
Date of Liquidation: 28 February 2003
36. African Express Bank
Date: 16 January 2006
37. Allstates Trust Bank
Date: 16 January 2006
38. Assurance Bank
Date: 16 January 2006