• Mon. May 29th, 2023

CBN Revokes Licenses of 132 Microfinance Banks

ByJustice Godfrey Okamgba

May 24, 2023

The Central Bank of Nigeria (CBN) has taken the decision to revoke the operating licenses of 132 Microfinance Banks, three finance companies, and four primary mortgage banks.

Among the microfinance banks affected by this action are 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.

Other institutions include Manny Microfinance Bank, Reality Microfinance Bank, Osina Microfinance Bank, Zikado Microfinance Bank, Taraba Microfinance Bank, and Ndiagu Microfinance Bank, among several others.

Additionally, the licenses of the finance companies HHL Invest & Trust Limited, TFS Finance Limited, and Treasures & Trust Limited have been revoked by the CBN. Furthermore, four primary mortgage banks that lost their licenses are Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans, and Kogi Savings & Loans.

According to the Federal Government of Nigeria Official Gazette, the CBN stated that these Microfinance Banks, Finance Companies, and Primary Mortgage Banks have ceased to engage in the business activities for which their licenses were granted for a continuous period of six months within Nigeria.

The Gazette, signed by CBN Governor Godwin Emefiele, also revealed that the affected institutions failed to meet the conditions and obligations set by the CBN at the time of granting their licenses. These obligations are in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.

In his statement, Emefiele exercised the powers conferred on the Central Bank of Nigeria under Section 12 of BOFIA 2020, Act No.5, officially revoking the licenses of the Microfinance Banks, Finance Companies, and Primary Mortgage Banks listed in Schedules I, II, and III, respectively, as attached to the report


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