Nigeria’s Central Bank Revokes the Licenses of 47 Microfinance Banks, Others

The Central Bank of Nigeria (CBN) has withdrawn the license of Eyowo, one of Nigeria’s digital banks, and 46 other microfinance banks.

The financial sector regulator said it took the decision to revoke the licenses of the 47 entities because they had either remained inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six (6) months.

The CBN said doing any of the above puts the affected banks in contravention of the Banks and other Financial Institutions Act (BOFIA), 2020, and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.

The CBN governor Godwin Emefiele, in a declaration announcing the revocation, said previous measures taken by the apex bank to halt the persistent failure of the affected banks failed.

“I, Godwin Ifeanyi Emefiele, CON, Governor of the Central Bank of Nigeria, in the exercise of the powers conferred upon me by Section 12 of the Banks and Other Financial Institutions Act (BOFIA), 2020, hereby revoke the licenses of the 47 (forty-seven) Microfinance Banks,” he said.

The CBN also announced that it has revoked the operating licenses of about 132 companies that cut across Microfinance Banks, Finance Companies and Primary Mortgage Banks.

The financial sector regulator cited the following reasons for taking the decision to withdraw their licenses:

“The Microfinance Banks, Finance Companies and Primary Mortgage Banks stated in Schedules I, II and III respectively, hereto, have:

“(a) ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of 6 months.

“(b) failed to fulfil or comply with the conditions subject to which their licences were granted; or

“(c) 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.”

Below is the list of the 47 microfinance banks whose licenses were withdrawn.

1. Evangel MICROFINANCE BANK,
2. DOMINION MICROFINANCE BANK,
3. ANYA MICROFINANCE BANK,
4. AKWENGWU MICROFINANCE BANK
5. FADAMA FARMERS MICROFINANCE BANK
6. SAL-FOL MICROFINANCE BANK
7. MAUTECH MICROFINANCE BANK
8. WASE MICROFINANCE BANK
9. SMARTMICRO MICROFINANCE BANK
10. AMBA MICROFINANCE BANK
11. BRIDGE HOUSE MICROFINANCE BANK
12. MONEYWELL MICROFINANCE BANK
13. OTUKPO MICROFINANCE BANK
14. OLOGBON MICROFINANCE BANK
15. BESTWAY MICROFINANCE BANK
16. BIYAMA MICROFINANCE BANK
17. GREENLAND MICROFINANCE BANK
18. FASILDAPO MICROFINANCE BANK
19. SUNRISE MICROFINANCE BANK
20. JOINT FARMERS MICROFINANCE BANK
21. PROLIFIC MICROFINANCE BANK
22. HALMOND MICROFINANCE BANK
23. AJIKOBI MICROFINANCE BANK
24. KOGI MICROFINANCE BANK
25. EYOWO MICROFINANCE BANK
26. ARISE MICROFINANCE BANK
27. ISI-AKU MICROFINANCE BANK
28. BMAZAZHIN MICROFINANCE BANK
29. INI MICROFINANCE BANK
30. NARICT MICROFINANCE BANK
31. INTERLAND MICROFINANCE BANK
32. EHOR MICROFINANCE BANK
33. BIBAJINRE MICROFINANCE BANK
34. GOLDEN FUNDS MICROFINANCE BANK
35. GWADABAWA MICROFINANCE BANK
36. IBA MICROFINANCE BANK
37. EDUMANA MICROFINANCE BANK
38. WEST-END MICROFINANCE BANK
39. UMEJEI MICROFINANCE BANK
40. MOUAU VASMUCS MICROFINANCE BANK
41. JAMIS MICROFINANCE BANK
42. NEW WORLD MICROFINANCE BANK
43. ABESTONE MICROFINANCE BANK
44. NSEHE MICROFINANCE BANK
45. OSOGBO MICROFINANCE BANK
46. CROSSOVER MICROFINANCE BANK
47. DANGIZHI MICROFINANCE BANK