Central Bank of Nigeria Revokes Licenses of Resort Savings on MFBanks

 The Central Bank of Nigeria (CBN) on Tuesday announced the revocation of the operating licenses of 179 microfinance banks in the country, alongside those of four primary mortgage banks and three finance companies.

The first gazette stated that the licenses of the financial institutions were revoked because 47 banks

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 months 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 second said they “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 fulfil 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.”

The CBN Governor, Mr Godwin Emefiele, revoked the licenses in the exercise of the powers conferred on the Central Bank of Nigeria under Section 12 of BOFIA 2020, Act No. 5.

“I, Godwin Ifeanyi Emefiele, CON, Governor of the Central Bank of Nigeria, in [the] 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.

“Given under my hand at Abuja this 22nd May, 2023,” the gazette declared.

The microfinance banks include – Brass Microfinance Bank, Bancorp Microfinance Bank, Atlas Microfinance Bank, Bluewhales Microfinance Bank, Everest Microfinance Bank, Eyowo Microfinance Bank, Igangan Microfinance Bank, Mainsail Microfinance Bank, Merit Microfinance Bank, Minna Microfinance Bank, Musharaka Microfinance Bank, Nopov Microfinance Bank, Ohon Microfinance Bank, and Purple Money Bank among others.

Finance companies whose licenses were revoked included – HHL Invest & Trust Limited, TFS Finance Limited and Treasures & Trust Limited.

The four primary mortgage banks whose licenses were revoked were – Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans, and Kogi Savings & Loans.