CBN has revoked license of 47 Banks
Article Summary
- 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.
- 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.
- 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:
- Evangel Microfinance Bank
- Dominion Microfinance Bank
- Anya Microfinance Bank
- Akwengwu Microfinance Bank
- Fadama Farmers Microfinance Bank
- Sal-Fol Microfinance Bank
- Mautech Microfinance Bank
- Wase Microfinance Bank
- Smartmicro Microfinance Bank
- Amba Microfinance Bank
- Bridge House Microfinance Bank
- Moneywell Microfinance Bank
- Otukpo Microfinance Bank
- Ologbon Microfinance Bank
- Bestway Microfinance Bank
- Biyama Microfinance Bank
- Greenland Microfinance Bank
- Fasildapo Microfinance Bank
- Sunrise Microfinance Bank
- Joint Farmers Microfinance Bank
- Prolific Microfinance Bank
- Halmond Microfinance Bank
- Ajikobi Microfinance Bank
- Kogi Microfinance Bank
- Eyowo Microfinance Bank
- Arise Microfinance Bank
- Isi-Aku Microfinance Bank
- Bmazazhin Microfinance Bank
- Ini Microfinance Bank
- Narict Microfinance Bank
- Interland Microfinance Bank
- Ehor Microfinance Bank
- Bibajinre Microfinance Bank
- Golden Funds Microfinance Bank
- Gwadabawa Microfinance Bank
- Iba Microfinance Bank
- Edumana Microfinance Bank
- West-End Microfinance Bank
- Umejei Microfinance Bank
- Mouau Vasmucs Microfinance Bank
- Jamis Microfinance Bank
- New World Microfinance Bank
- Abestone Microfinance Bank
- Nsehe Microfinance Bank
- Osogbo Microfinance Bank
- Crossover Microfinance Bank
- 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.