In a recent development, the Central Bank of Nigeria (CBN) has announced the revocation of operational licenses for a total of 132 microfinance banks, along with four primary mortgage banks and three finance companies.
The decision, made under the powers conferred by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, was disclosed in a CBN gazette released last night.
According to the CBN, these institutions have failed to meet the necessary requirements for the continuous operation of their businesses.
The reasons cited include their failure to engage in their licensed activities within Nigeria for a continuous period of six months, non-compliance with the conditions and obligations set forth by the CBN, as well as the provisions of the BOFIA 2020, Act No. 5.
Among the finance companies whose licenses have been revoked are HHL Invest & Trust Limited, TFS Finance Limited, and Treasures & Trust Limited.
Additionally, the four primary mortgage banks affected are Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans, and Kogi Savings & Loans.
The extensive list of microfinance banks affected by the revocation includes 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 several others.
Governor Godwin Emefiele, the head of the CBN, exercised the authority granted by BOFIA 2020, Act No. 5, in revoking these licenses.
The CBN’s action underscores its commitment to upholding regulatory standards and ensuring the stability and integrity of the financial sector in Nigeria.