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Why CBN Revoked Licenses of 132 MFBs, 4 PMIs, 3 Finance Coys

The Central Bank of Nigeria recently announced the revocation of the operating licences of some financial institutions in the country and many Nigerians have wondered what could have warranted such a strong decision.

The Banking Industry regulator explained that some of the institutions had not carried on business for an unbroken period of six months. Other reasons adduced for the revocation, as stated in the Gazette No 94 dated May 23,2023, are non-compliance with obligations imposed on them by the Central Bank of Nigeria based on powers conferred on the apex bank by the Banks and Other Financial Institutions Act BOFIA (2020) and non-fulfilment of or non-compliance with conditions guiding the licences.

The affected institutions are 132 Microfinance Banks, 4 Primary Mortgage institutions and 3 Finance Companies.

The names of the Finance Companies are: HHL Invest and Trust, TFS Finance Limited and Treasure and Trust Limited while the Primary Mortgage Institutions axed by the apex bank are Resort Savings and Loans, Safetrust Mortgage Bank, Adamawa Savings and Loans as well as Kogi Savings and loans.

In the case of Microfinance Banks, the following are among the 132 affected: Atlas, Bluewhales, Everest, Igangan, Mainsail, Merit, Minna, Musharaka, Royal, Statesman, Premium, Suisse, Ola, Uli, Verdant, Manny, Subpolitan, Onyx, Northbridge, Taraba, FCT, Dadinkowa, Kada, Primera Credit, ABC, Star, Cowries,  Awka, Bishopgate and Stallion.

Others include Fiyinfolu, Awgbu, Enugu-Ukwu, Esan, Olofin-Owena, Obosi, Business Support, Purple-Money, Zikado, Olofin-Owena, Zigate, Aguleri, Zamare, Virtue, Excellent, Michika, Bancorp, Dakingari, Ogoja, MoneyWise, NewAge, Calabar, Bridgeway, Ifesowapo, Keffi, Umunne, Oroke, Alkaleri,Surelife and OAF.

The list published by the CBN has 62 other microfinance banks on it.

In announcing the revocation, the Governor of the Central Bank of Nigeria, Mr. Godwin Ifeanyi Emefiele, relied on the powers conferred on him by Section 12 of the Banks and Other Financial Institutions Act no5 of 2020.

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