Banking

CBN revokes 179 microfinance banks’ licences

The Central Bank of Nigeria (CBN) has revoked the operating licenses of no fewer than 179 microfinance banks in the country.

This was made known via the official gazette of the Federal Government, which was published on the website of the CBN on Tuesday, May 23.

It noted that the licenses of the banks were revoked over the failure to carry on in Nigeria, the type of business for which their licences were issued for a continuous period of six months.

The government stated that the financial institutions also failed to fulfil or comply with the conditions subject to which their licences were granted.

It added that the banks also failed to comply with the obligations imposed upon them by the CBN in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.

The CBN Governor, Godwin Emefiele, according to the document, revoked the licenses in the exercise of the powers conferred on the apex bank under Section 12 of BOFIA 2020, Act No. 5.

The microfinance banks included 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.

Finance companies whose licenses were revoked were HHL Invest & Trust Limited, TFS Finance Limited and Treasures & Trust Limited while the four primary mortgage banks whose licenses were revoked are – Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans, and Kogi Savings & Loans.

Reacting to the development, the Nigeria Deposit Insurance Corporation (NDIC) assured depositors of the closed banks speedy payment of their insured sums.

The NDIC Managing Director, Bello Hassan, who gave the assurance via a statement issued on Tuesday, said the corporation, as deposit insurer, would begin the process of payment of the insured sums immediately with the verification of eligible depositors at the respective premises of the closed banks.

Hassan, however, urged the depositors to get the required documents for the exercise such as proof of account ownership, verifiable means of identification, and alternate bank account to facilitate their seamless verification and payment of their insured deposits.

The Star