CBN has revoked license of 47 Banks

Article Summary

1. The Central Bank of Nigeria (CBN) has taken the decision to revoke the licenses of 47 microfinance banks, including Eyowo, due to reasons such as inactivity, insolvency, failure to submit financial returns, or closure of operations.
2. According to the apex bank, the licenses of these companies were revoked because they had either remained inactive, become insolvent, failed to provide required financial returns, or ceased their operations.
3. In a parallel development, the CBN has also revoked the licenses of 132 other companies operating as microfinance banks, finance companies, and primary mortgage banks.

The Central Bank of Nigeria (CBN) has recently revoked the microfinance license of Eyowo, along with 46 other companies. The apex bank cited various reasons for revoking the licenses, including inactivity, insolvency, failure to submit financial returns, closure of operations, or failure to carry out the designated banking business for more than six months. These actions are in violation of the Banks and other Financial Institutions Act (BOFIA), 2020, and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.

Despite previous measures taken by the Regulatory Authority to address their persistent non-compliance, the CBN declared that those measures were unsuccessful, leading to the decision to revoke their licenses. CBN Governor Godwin Emefiele announced the revocation of the licenses in accordance with the powers bestowed upon him by Section 12 of the BOFIA, 2020.

The list of the 47 microfinance banks whose licenses were revoked includes:

1. Evangel Microfinance Bank
2. Dominion Microfinance Bank
3. Anya Microfinance Bank
4. Akwengwu Microfinance Bank
5. Fadama Farmers Microfinance Bank
6. Sal-Fol Microfinance Bank
7. Mautech Microfinance Bank
8. Wase Microfinance Bank
9. Smartmicro Microfinance Bank
10. Amba Microfinance Bank
11. Bridge House Microfinance Bank
12. Moneywell Microfinance Bank
13. Otukpo Microfinance Bank
14. Ologbon Microfinance Bank
15. Bestway Microfinance Bank
16. Biyama Microfinance Bank
17. Greenland Microfinance Bank
18. Fasildapo Microfinance Bank
19. Sunrise Microfinance Bank
20. Joint Farmers Microfinance Bank
21. Prolific Microfinance Bank
22. Halmond Microfinance Bank
23. Ajikobi Microfinance Bank
24. Kogi Microfinance Bank
25. Eyowo Microfinance Bank
26. Arise Microfinance Bank
27. Isi-Aku Microfinance Bank
28. Bmazazhin Microfinance Bank
29. Ini Microfinance Bank
30. Narict Microfinance Bank
31. Interland Microfinance Bank
32. Ehor Microfinance Bank
33. Bibajinre Microfinance Bank
34. Golden Funds Microfinance Bank
35. Gwadabawa Microfinance Bank
36. Iba Microfinance Bank
37. Edumana Microfinance Bank
38. West-End Microfinance Bank
39. Umejei Microfinance Bank
40. Mouau Vasmucs Microfinance Bank
41. Jamis Microfinance Bank
42. New World Microfinance Bank
43. Abestone Microfinance Bank
44. Nsehe Microfinance Bank
45. Osogbo Microfinance Bank
46. Crossover Microfinance Bank
47. Dangizhi Microfinance Bank

132 other licences revoked

In a similar vein, the Central Bank of Nigeria (CBN) has announced the revocation of operating licenses for 132 companies functioning as Microfinance Banks, Finance Companies, and Primary Mortgage Banks. The CBN provided reasons for the revocation, stating that the affected companies:

“(a) have ceased to conduct the specified type of business in Nigeria continuously for a period of 6 months; (b) have failed to meet or adhere to the conditions on which their licenses were granted; or (c) have failed to comply with the obligations imposed on them by the Central Bank of Nigeria, as stipulated in the Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.”

These actions by the CBN reflect its commitment to maintaining regulatory compliance and ensuring the soundness and integrity of the financial system in Nigeria.