The Central Bank of Nigeria, CBN, has revoked the licenses of 186 Microfinance Banks, Mortgage Banks and other financial institutions in the country.
The apex bank in a statement published on its website said the licenses were revoked because the financial institutions 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 months.
Citing the Banks and other Financial Institutions Act (BOFIA), 2020 and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria, the apex bank said Governor of CBN, Godwin Emefiele, has approved the revocation of their licenses.
“The Microfinance Banks, Finance Companies and Primary Mortgage hereto, have ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of 6 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.
“I, Godwin Ifeanyi Emefiele, CON, Governor of the Central Bank of Nigeria, in exercise of the powers conferred on the Central Bank of Nigeria under Section 12 of BOFIA 2020, Act No.5, hereby revoke the licences of the Microfinance Banks, Finance Companies and Primary Mortgage Banks.”