CBN revokes 46 MFBs’ licences

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CBN

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By Emma Ujah, Abuja Bureau Chief

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The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MFBs).

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A statement by the CBN’s Ag. Director of Communications, Mrs. Hakama Sidi-Ali said the revocation becomes effective today.

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She said the revocation was in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

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“The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi
Cardoso, following the banks’ failure to meet the regulatory requirements for continued
operation as licensed financial institutions,” she said.

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According to the revocation order, the action became necessary because of one or more of: insufficient assets to meet liabilities; closure of operations without the CBN approval; and inactivity and cessation of financial intermediation.

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Others were: failure to commence operations within 12 months of licence approval, and failure to maintain minimum capital funds unimpaired by losses.

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The Ag. director said the revocation of the licenses was 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.

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