The Central Bank of Nigeria (CBN) has revoked operating licenses of 46 Microfinance Banks (MfBs) over weak asset position.
The licences withdrawals took immediate effect, and in line with CBN’s powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
Following the revocation of the operating licenses of the MfBs, the Nigeria Deposit Insurance Corporation (NDIC), was also appointed as the official liquidator, pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act 2023.
In a statement, CBN Acting Director, Corporate Communications Department, Mrs. Sidi-Ali, Hakama said some of the affected banks had
insufficient assets to meet liabilities, closed their operations without the CBN approval and failed to maintain minimum capital funds unimpaired by losses.
Some of the banks, the CBN added, faced inactivity and cessation of financial intermediation and failed to commence operations within 12 months of licence approval.
“The revocation was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” the apex bank said.
The affected institutions are Minji-Se Churchill Microfinance Bank in Rivers State, Merchant Microfinance Bank and Abia SME Microfinance Bank in Abia State, Janmaa Microfinance Bank in Kwara State, Busu Microfinance Bank and Bejin-Doko Microfinance Bank in Niger State, Gold Microfinance Bank, Chanelle Microfinance Bank, Safegate Microfinance Bank.
Others are, Supreme Microfinance Bank, Creditville Microfinance Bank, MBAG Microfinance Bank, Verdant Microfinance Bank and Entrepreneur Microfinance Bank in Lagos State, Zain Microfinance Bank (formerly Dawakin Tofa Microfinance Bank), Bompai Microfinance Bank, Ajwa Microfinance Bank (formerly Gezawa Microfinance Bank), Now Now Digital Microfinance Bank, Minjibir Microfinance Bank.
It added that the revocation of the licenses is part of the bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements.
“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,” it stated.
In a statement, NDIC Head, Communication & Public Affairs Department, Hawwau Gambosaid the affected institutions are no longer authorised to conduct banking business in Nigeria.
“Consequently, members of the public are strongly advised against any unauthorized transaction with the closed banks, or any attempt by individuals to remove, conceal, retain, or interfere with the assets, records, or properties of the banks, as this may constitute a violation of the law that could attract appropriate legal consequences,” the corporation said.
The NDIC says it has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors.
“Depositors and the general public would be duly informed on an ongoing basis on further steps to be taken regarding the liquidation exercise,” it said.
Also affected by the decision of the CBN are, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, Tofa Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank (formerly Tsanyawa Microfinance Bank) and Esteem Microfinance Bank in Kano State, Crystabel Microfinance Bank in Bayelsa State, Kamba Microfinance Bank and Zuru Microfinance Bank in Kebbi State.
Iwade Microfinance Bank and Apple Microfinance Bank in Ogun State, Winview Microfinance Bank and Casha Microfinance Bank in the Federal Capital Territory, Mwaghavul Microfinance Bank and Yeneng Microfinance Bank in Plateau State, Creekline Microfinance Bank in Delta State, Bestar Microfinance Bank in Oyo State, Livingspring Microfinance Bank in Cross River State, Stanford Microfinance Bank in Akwa Ibom State all had their licences withdrawn.
The CBN also axes Frontline Microfinance Bank in Anambra State, Zafec Microfinance Bank and Basawa Microfinance Bank in Kaduna State, Straight Sahara Microfinance Bank in Benue State, OurPass Microfinance Bank in Ondo State, and Avantus Microfinance Bank in Osun State.
