CBN MANAGER SPEAKS .
By the Powers Conferred on Me”: CBN Revokes Licenses of Over 170 Microfinance Banks, Finance Companies
Nigerians are advised to avoid doing business with the listed banks.
CBN has revoked the licenses of over 180 microfinance, mortgage banks, and finance companies. Customers who might have money deposited in the banks are expected to withdraw their money The revocation of licenses results from various issues, such as insolvency, inactivity, failure to render returns, among others.
The Central Bank of Nigeria has revoked the licenses of 179 microfinance banks, four primary mortgage banks, and three finance companies across the country. The announcement was made in the official gazette of the Federal Government, which was published on the CBN’s website on Tuesday, May 23, 2023.
Why the banks’ licenses were revoked?
According to the gazette, these financial institutions had their licenses revoked due to several reasons. 👇👇
Firstly, they had ceased to conduct business in Nigeria for a continuous period of six months, contrary to the purpose for which their licenses were granted
Secondly, they failed to fulfill or comply with the conditions set forth when their licenses were issued.
Lastly, they did not meet the obligations imposed upon them by the CBN in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.
CBN speaks on the failed banks The Gazette noted that the decision to revoke these licenses was made by the CBN Governor, Godwin Emefiele, exercising the powers conferred on the Central Bank under Section 12 of the BOFIA 2020, Act No. 5.
List of failed banks by categories Among the microfinance banks affected by the license revocation are:👇👇
Gwadabawa Microfinance Bank Iba Microfinance Bank Edumana Microfinance Bank West-End Microfinance Bank Umejei Microfinance Bank Mouau Vasmucs Microfinance Bank Jamis Microfinance Bank New World Microfinance Bank Abestone Microfinance Bank Nsehe Microfinance Bank Osogbo Microfinance Bank Crossover Microfinance Bank Dangizhi Microfinance Bank.
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