The Central Bank of Nigeria (CBN) said it has revoked the operating licenses of upto 179 microfinance banks in the country.
This was revealed in the official gazette of the Federal Governmen as published on the website of the Central Bank of Nigeria (CBN) on Tuesday, May 23, 2023.
As contained in the gazette, the licences of the financial institutions were revoked because they have failed to carry on the type of business for which their licences have been issued in Nigeria.
The revocation is due after consistent non compliance which has continued for a period of six months.
The banks also failed to fulfil or comply with the conditions subject to which their licences were granted; or failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.
The CBN Governor, Godwin Emefiele, according to the document revoked the licenses in the exercise of the powers conferred on the Central Bank of Nigeria under Section 12 of BOFIA 2020, Act No. 5.
The four primary mortgage banks whose licences were revoked are Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans and Kogi Savings & Loans.
The finance companies whose licences were revoked include HHL Invest & Trust Limited, TFS Finance Limited and Treasures & Trust Limited.
Some of the microfinance banks listed include Bluewhales Microfinance Bank, Igangan Microfinance Bank, Mainsail Microfinance Bank, Everest Microfinance Bank, Merit Microfinance Bank, Musharaka Microfinance Bank, Nopov Microfinance Bank, among others.
Below is the full list of Microfinance Banks which licenced were revoked:
Atlas Microfinance Bank
- Blue whales 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
- Premium Microfinance Bank
- Royal Microfinance Bank
- Statesman Microfinance Bank
- Suisse Microfinance Bank
- Vibrant Microfinance Bank
- Virtue Microfinance Bank
- Zamare Microfinance Bank
- North Capital Microfinance Bank
- Chidera Microfinance Bank
- Excellent Microfinance Bank
- Ni’ima Microfinance Bank
- Cosmopolitan Microfinance Bank
- Progressive link Microfinance Bank
- TrustOne (Formerly Desmonarchy)
- Ekuombe Microfinance Bank
- First Index Microfinance Bank
- Ola Microfinance Bank
- Uli Microfinance Bank.
- Verdant Microfinance Bank
- Aguleri Microfinance Bank
- Apeks Microfinance Bank
- Fahimta Microfinance Bank
- Manni Microfinance Bank Limited
- Reality Microfinance Bank Limited
- Surbpolitan Microfinance Bank Limited
- Onyx Microfinance Bank Limited
- Osina Microfinance Bank Limited
- Olofin-Owena Microfinance Bank Limited
- Zikado Microfinance Bank Limited
- Prudential Co-operative Microfinance Bank Limited
- Peniel Microfinance Bank Limited
- Taraba Microfinance Bank Limited
- Brass Microfinance Bank Limited
- Michika Microfinance Bank Limited
- Ndiagu Microfinance Bank Limited
- Northbridge Microfinance Bank Limited
- FCT Microfinance Bank Limited
- Omu-Aran Microfinance Bank Limited
- Cherish Microfinance Bank Limited
- BIPC Microfinance Bank Limited
- Danels Global Microfinance Bank Limited
- Bankcorp Microfinance Bank Limited
- Manna Microfinance Bank Limited
- Moneywise Microfinance Bank Limited
- Mercury Microfinance Bank Limited
- New age Microfinance Bank Limited
- Pearl Microfinance Bank Limited
- Zawadi Microfinance Bank Limited
- Seed Capital Microfinance Bank Limited
- Eduek Microfinance Bank Limited
- Eksu Microfinance Bank Limited
- Dakingari Microfinance Bank Limited
- Ogoja Microfinance Bank Limited
- Nwabosi Microfinance Bank Limited
- Nuture Microfinance Bank Limited
- Active Point Microfinance Bank Limited
- Amoye Microfinance Bank Limited
- Boluwaduro Microfinance Bank Limited
- Iyede Microfinance Bank Limited
- Mayfair Microfinance Bank Limited
- Calabar Microfinance Bank Limited
- Ighomo Microfinance Bank Limited
- Hackman Microfinance Bank Limited
- Idese Microfinance Bank Limited
- Bridgeway Microfinance Bank Limited
- Grassroot Microfinance Bank Limited
- Sure life Microfinance Bank Limited
- Tijarah Microfinance Bank Limited
- IC-Global Microfinance Bank Limited
- Ejiamatu Microfinance Bank Limited
- Briyth Covenant Microfinance Bank Limited
- Nanka Microfinance Bank Limited
- Cub Microfinance Bank Limited
- BFL Microfinance Bank Limited
- Umunne Microfinance Bank Limited
- Oroke Microfinance Bank Limited
- Alkaleri Microfinance Bank Limited
- Crowned Eagle Microfinance Bank Limited
- UNIFA Microfinance Bank Limited
- Dadinkowa Microfinance Bank Limited
- Ifesowapo Microfinance Bank Limited
- OAF Microfinance Bank Limited
- Bama Microfinance Bank Limited
- Ngala Microfinance Bank Limited
- Iwoama Microfinance Bank Limited
- Kada Microfinance Bank Limited
- Keffi Microfinance Bank Limited
- Nut-Endwell Microfinance Bank Limited
- First Multipurpose Microfinance Bank Limited
- SBDC Microfinance Bank Limited
- Oros Capital Microfinance Bank Limited
- Ozizza Microfinance Bank Limited
- Primera Credit Microfinance Bank Limited
- Ifeanyichukwu Microfinance Bank Limited
- Ihioma Microfinance Bank Limited
- Josad Microfinance Bank Limited
- Akpo Microfinance Bank Limited
- Aiyepe Microfinance Bank Limited
- ABC Microfinance Bank Limited
- Star Microfinance Bank Limited
- Purple Money Microfinance Bank Limited
- Utuh Microfinance Bank Limited
- Stallion Microfinance Bank Limited
- KJL Microfinance Bank Limited
- Credit Afrique Microfinance Bank Limited
- Cowries Microfinance Bank Limited
- Lawebod Microfinance Bank Limited
- Mabinas Microfinance Bank Limited
- Business Support Microfinance Bank Limited
- Ogbe-Ahiara Microfinance Bank Limited
- Olofin Microfinance Bank Limited
- Obosi Microfinance Bank Limited
- Fiyinfolu Microfinance Bank Limited
- Bishopgate Microfinance Bank Limited
- Awka Microfinance Bank Limited
- Zigate Microfinance Bank Limited
- Esan Microfinance Bank Limited
- Enugu-Ukwu Microfinance Bank Limited
- Echo Microfinance Bank Limited
- Ally Microfinance Bank Limited
- Network Microfinance Bank Limited
- Awgbu Microfinance Bank Limited.
Meanwhile, the development has created tension among customers of the affected banks who are worried about how to withdraw their savings, and insured sums, among other things.
However, in a quick reaction, Nigeria Deposit Insurance Corporation (NDIC) has assured depositors of the closed banks speedy payment of their insured sums.
The NDIC Managing Director/Chief Executive, Mr. Bello Hassan gave this assurance in a statement which followed the revocation of the licenses of the affected MFBs and PMBs by the Governor of the CBN, Mr. Godwin Emefiele, CON.
Hassan said, as deposit insurer, the NDIC would begin the process of payment of the insured sums immediately with the verification of eligible depositors at the respective premises of the closed banks.
He enjoined such depositors to get the required documents for the exercise such as proof of account ownership, verifiable means of identification and alternate bank account to facilitate their seamless verification and payment of their insured deposits.
The NDIC Boss stated that the insured deposit is the first claim that the Corporation pays to depositors upon revocation of bank’s license by the CBN, adding that the maximum specified limits for the MFB and PMB sub-sectors are N200,000.00 and N500,000.00 per depositor per bank, respectively.
As liquidator, the MD disclosed that the Corporation has also put machinery in motion to commence sales of assets of the defunct banks as well as recover debts owed to them in order to declare liquidation dividends on pro -rata basis to the affected depositors with claims exceeding the maximum insured sums of N200,000.00 for MFBs and N500,000.00 for PMBs.
He assured that regulatory authorities are leaving no stone unturned to ensure that the soundness of the banking system is not compromised, stressing that there is no need for the public to panic over the safety of their bank deposits
