Four principal mortgage banks, three financing firms, 179 microfinance banks, and more in Nigeria had their licences withdrawn by the Central Bank of Nigeria, CBN.
This information was made public in the Federal Government’s official gazette, which was posted on the CBN website on Tuesday.
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”
In the course of acting under the authority granted to the Central Bank of Nigeria by Section 12 of BOFIA 2020, Act No. 5, CBN Governor Godwin Emefiele withdrew the licences.
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, Ohon Microfinance Bank, and others are among the microfinance banks.
HHL Invest & Trust Limited, TFS Finance Limited, and Treasures & Trust Limited are among the financial institutions whose licences were cancelled, while Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans, and Kogi Savings & Loans were the four key mortgage banks.
The CBN also cancelled the licences of a further 47 microfinance institutions, bringing the total number of affected microfinance banks to 179.
In accordance with the Banks and Other Financial Institutions Act (BOFIA), 2020, and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria, the banks in the most recent batch “either remained inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licenced for more than six months.”
Some of the affected financial institutions 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.