Four primary mortgage banks, three financing firms, 179 microfinance banks, and more operating in the country had their licences withdrawn by the Central Bank of Nigeria. This was made public in the Federal Government’s official gazette, which was equally posted on the CBN website on Tuesday.
Evidently, the financial institutions’ licences were revoked, according to the gazette, 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; failed to fulfil or comply with the conditions subject to which their licences were granted; or 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The licences were further withdrawn by CBN Governor Godwin Emefiele in accordance with the authority granted to the CBN by Section 12 of BOFIA 2020, Act No. 5.
Included among the microfinance institutions are 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, and others.
HHL Invest & Trust Limited, TFS Finance Limited, and Treasures & Trust Limited are among the financial institutions whose licences were revoked. Also, the four primary mortgage banks whose licences were revoked were Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans, and Kogi Savings & Loans.
The CBN also suspended the licence of a further 47 microfinance institutions. This basically brings the total number of microfinance institutions affected by this action to 179.
The official gazette for the last batch stated that the banks have –
“Either remained inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six months in contravention of the Banks and other Financial Institutions Act (BOFIA), 2020 and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.”
Some of the affected financial institutions further include;
- Evangel Microfinance Bank
- Dominion Microfinance Bank
- Anya Microfinance Bank
- Akwengwu Microfinance Bank
- Fadama Farmers Microfinance Bank
- Sal-Fol Microfinance Bank, Mautech Microfinance Bank
- Wase Microfinance Bank
- Smartmicro Microfinance Bank
- Amba Microfinance Bank
- Bridge House Microfinance Bank
- Moneywell Microfinance Bank
- Otukpo Microfinance Bank and others.