The Central Bank of Nigeria has revoked the operating licences of more than a hundred financial institutions across the country for non-compliance.
The operating licences of 132 microfinance banks, four primary mortgage banks and three finance businesses have all been revoked by the Central Bank of Nigeria.
This information was made public in the Federal Government’s official gazette, which was posted on the CBN website on Tuesday.
Per the gazette, the financial institutions’ licences 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; 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 revoked by the CBN Governor Godwin Emefiele in accordance with the authority granted to the CBN by Section 12 of BOFIA 2020, Act No. 5.
The microfinance banks include Atlas Microfinance Bank, Bluewhales Microfinance Bank, Everest Microfinance Bank, Igangan Microfinance Bank, Mainsail Microfinance Bank, Merit Microfinance Bank, Minna Microfinance Bank, Microfinance Bank, among others.
HHL Invest & Trust Limited, TFS Finance Limited, and Treasures & Trust Limited are among the finance companies whose licences have been revoked, while Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans, and Kogi Savings & Loans are the four primary mortgage banks whose licences have been revoked.
The CBN also revoked the licences of 47 other Microfinance banks that have remained inactive or closed shop. “The 47 (forty-seven) Microfinance Banks listed in the Schedule hereto 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 (6) 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,” the statement read in part.
A list of the microfinance banks under this section includes 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 amongst others.
*This is a developing story.