• Wednesday, June 19, 2024
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CBN revokes licenses of 132 Microfinance banks, 3 finance companies, 4 PMBs

The CBN governor wields enormous power without accountability

The Central Bank of Nigeria (CBN) has revoked the licenses of 132 Microfinance Banks (MFBs), three finance companies and four Primary Mortgage Banks (PMBs).

The revocation of licenses was due for failing to comply with the obligations imposed upon them by their regulator in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.

Godwin Emefiele, governor of the CBN, disclosed this in a Gazette dated May 22, 2023.

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The Gazette reads: “whereas: The Microfinance Banks, Finance Companies and Primary Mortgage Banks stated in Schedules I, II and III respectively, hereto, have: ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of six months ; failed to fulfill 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.

Now therefore, I, Godwin Ifeanyi Emefiele, governor of the Central Bank of Nigeria, in exercise of the powers conferred on the Central Bank of Nigeria under Section 12 of BOFIA 2020, Act No.5, hereby revoke the licences of the Microfinance Banks, Finance Companies and Primary Mortgage Banks stated in Schedules I, II and III respectively attached hereto.”