Why CBN Revokes licenses of 132 microfinance banks
The operating licenses of 132 Microfinance Banks, three finance companies and four primary mortgage banks have been revoked by the Central Bank of Nigeria.
The CBN said the Microfinance Banks, Finance Companies and Primary Mortgage Banks ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of six months. They also failed to fulfill or comply with the conditions subject to which their licences were granted.
They also 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.
A gazette signed by CBN Governor, Godwin Emefiele read;
“Now Therefore, I, Godwin Ifeanyi Emefiele, CON, Governor of the Central Bank of Nigeria, in exercise of the powers conferred on the Central Bank of Nigeria under Section 12 of BOFIA 2020, Act No.5, hereby revoke the licences of the Microfinance Banks, Finance Companies and Primary Mortgage Banks stated in Schedules I, II and III respectively attached hereto.”
Some of the affected Microfinance banks include Atlas Microfinance Bank; Bluewhales Microfinance Bank; Everest Microfinance Bank; Mainsail Microfinance Bank; Nopov Microfinance Bank; Ohon Microfinance Bank; Premium Microfinance Bank and Statesman Microfinance Bank.
Others include Manny Microfinance Bank; Reality Microfinance Bank; Osina Microfinance Bank; Zikado Microfinance Bank; Taraba Microfinance Bank, Ndiagu Microfinance Bank, among others.
The Finance Companies- HHL Invest & Trust Limited, TFS Finance Limited and Treasures & Trust Limited.
The primary mortgage Banks which also lost their licenses are Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans and Kogi Savings & Loans.