By Seun Ibiyemi
CBN Revokes Licences of 46 Microfinance Banks Over Regulatory Breaches
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country for failing to meet key regulatory requirements, as part of efforts to strengthen the nation’s financial system and protect depositors.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, stating that the revocation takes immediate effect.
According to the CBN, the action was taken in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, following findings that the affected institutions no longer satisfied the conditions required to operate as licensed financial institutions.
The regulator said the affected banks were found to have committed one or more regulatory infractions, including inadequate assets to meet liabilities, ceasing operations without the approval of the CBN, prolonged inactivity and failure to carry out financial intermediation, failure to commence business within 12 months of obtaining a licence, and inability to maintain the prescribed minimum capital free of accumulated losses.
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The CBN said the measure forms part of its ongoing supervisory efforts to ensure compliance with banking regulations and maintain the stability of the financial sector.
“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 read.
Among the affected institutions are Minji-Se Churchill Microfinance Bank in Rivers State, Merchant Microfinance Bank in Abia State, Janmaa Microfinance Bank in Kwara State, Gold Microfinance Bank in Lagos State, Chanelle Microfinance Bank in Lagos State, Winview Microfinance Bank in the Federal Capital Territory, Creditville Microfinance Bank in Lagos State, Entrepreneur Microfinance Bank in Lagos State, and Avantus Microfinance Bank in Osun State, alongside several others spread across Kano, Kaduna, Kebbi, Niger, Plateau, Ogun, Delta, Oyo, Cross River, Benue, Ondo and Anambra states.
The latest action underscores the CBN’s continued oversight of the banking industry as it seeks to enforce prudential standards, improve corporate governance and ensure that only financially sound institutions remain in operation.
