No fewer than 46 microfinance banks across the country have lost their operating licences, the Central Bank of Nigeria, CBN, has disclosed.
The CBN announced the revocation of the affected banks’ licences in a statement on Wednesday.
According to the statement by its Acting Director of Corporate Communications, Hakama Sidi-Ali, the revocation takes immediate effect.
The apex bank stated that the decision was in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, adding that the affected microfinance banks had not met the requirements necessary to continue operating as licensed financial institutions.
The CBN said the move was sequel to the identification of one or more regulatory infractions, including insufficient assets to meet liabilities, closure of operations without the approval of the apex bank, prolonged inactivity and cessation of financial intermediation, failure to commence business within 12 months of receiving a licence, and failure to maintain the required minimum capital unimpaired by losses.
The financial regulator also stated that the move is aimed at protecting the stability of the banking system, adding that it is committed to building a solid and strong financial system.
“The revocation of the licences 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,” the statement said.
See the full list of affected banks below:
