THE Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country over their failure to meet key regulatory requirements for continued operations.
In a statement on Wednesday, July 1, signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali, CBN said the revocation, which took immediate effect, followed the approval of its Governor, Olayemi Cardoso, in line with the powers conferred on the CBN under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.
The apex bank said the revocation was approved after the affected institutions failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.
CBN stated that the decision became necessary because one or more of several infractions were established against the affected institutions, including insufficient assets to meet liabilities, closure of operations without the approval of the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving licences and failure to maintain the prescribed minimum capital unimpaired by losses.
The affected lenders comprise Tier 1, Tier 2 and State microfinance banks spread across several states, including Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra. Some of the affected banks are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank and NOW NOW Digital Microfinance Bank.
Several Kano-based institutions were affected, such as Bompai Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, TOFA Microfinance Bank, Kanopoly Microfinance Bank and Esteem Microfinance Bank.
The CBN said the measure formed part of its broader efforts to strengthen financial sector stability and enforce compliance with existing laws and regulatory requirements.
It reaffirmed its commitment to financial system stability and would continue to take supervisory and regulatory actions where necessary, adding: “The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system.”
