CBN withdraws operating licences of 132 microfinance banks
By Business A.M.
The Central Bank of Nigeria (CBN) has revoked the operating licenses of 132 Microfinance Banks, three finance companies and four primary mortgage banks in the country.
This was disclosed in the official gazette of the federal government, published on the CBN’s website on May 23 2023.
The gazette explained that the licences of the financial institutions were revoked by Godwin Emefiele, governor of the apex bank, in exercise of the powers conferred on CBN under section 12 of the Banks and Other Financial Institutions Act (BOFIA), 2020, Act No. 5.
According to the gazette, the licences of the institutions were revoked because they ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of six months.
The gazette also stated that the affected financial institutions failed to fulfil or comply with the conditions subject to which their licences were granted. It added that they failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.
The four primary mortgage banks whose licences were revoked include Resort Savings & Loans,
Safetrust Mortgage Bank, Adamawa Savings & Loans and Kogi Savings & Loans.
Meanwhile, the finance companies whose licences were revoked include HHL Invest & Trust Limited,
TFS Finance Limited and Treasures & Trust Limited.
Top on the list of affected microfinance banks include Atlas Microfinance Bank; Bluewhales Microfinance Bank; Everest Microfinance Bank;Igangan Microfinance Bank; Mainsail Microfinance Bank; Merit Microfinance Bank;Minna Microfinance Bank;Musharaka Microfinance Bank; Nopov Microfinance Bank; Ohon Microfinance Bank; Premium Microfinance Bank;Royal Microfinance Bank and Statesman Microfinance Bank.
Other affected microfinance banks include Suisse Microfinance Bank;Vibrant Microfinance Bank;Virtue Microfinance Bank; Zamare Microfinance Bank; Chidera Microfinance Bank;North Capital Microfinance Bank;Excellent Microfinance Bank, among others.