This is contained in a circular signed by Valentine Ururuka, the Director of Financial Policy and Regulation Department of the apex bank addressed to all MfBs.

According to Ururuka, the CBN has observed with dismay the late and non-rendition of periodic returns on FinA by MfBs.

“All MfBs are, therefore, reminded of the provision of Section 24 of the Banks and Other Financial Institutions Act (BOFIA) 2020, and other regulations. Consequently, all MfBs are to ensure that their monthly FinA returns are submitted on or before the fifth day after month end.

“Where the fifth day falls on a weekend or public holiday, returns shall be submitted the previous work day,’’ he said. He warned the MfBs to ensure timely rendition as all future breaches “shall be sanctioned’’.

The CBN stated that the licenses of the MFBs were revoked because they failed to fulfill the conditions under which their licenses were granted and did not comply with the obligations imposed on them by the apex bank, as stipulated in the Banks and Other Financial Institutions Act (BOFIA) 2020.

The license revocations serve as a regulatory measure to enforce compliance and ensure the stability and integrity of the microfinance sector.

In view of this, NAMB has initiated a review of the recapitalization status of all MFBs that are members of the association.

The objective is to assess the recapitalization status of licensed MFBs nationwide and take follow-up actions in collaboration with regulatory authorities.

Mr. Shikir Caleb, the Executive Secretary of NAMB, emphasized the importance of preventing further license revocations and rebuilding the trust of Nigerians in microfinance banks.

The association directed its state chapters to categorize the affected micro-lenders into different groups, which include MFBs that have fully recapitalized but are awaiting CBN approval, MFBs that are in ongoing discussions for funding but have not fully recapitalized, MFBs that have not fully recapitalized, and MFBs that have permanently closed.

MFBs that have completed the recapitalization process but are awaiting CBN approval were instructed to submit their recapitalization status to the NAMB Secretariat.

The association plans to review the submissions and hold a meeting with all MFBs to collate the information and engage with the CBN management.

Mr. Joshua Ukute, the NAMB National President, expressed his concern over the license revocations and pledged that the association’s leadership would intensify self-regulation activities in MFBs across the country to prevent similar occurrences.

He also emphasized the importance of public enlightenment and building confidence in the microfinance sub-sector by engaging stakeholders in the association’s financial inclusion efforts.

Microfinance banks have been instrumental in implementing the financial inclusion strategy, particularly in underserved remote communities where larger financial institutions are less inclined to operate.