The Central Bank of Nigeria (CBN) has taken decisive action by revoking the operating licences of numerous financial institutions in the country.
The decision, which affects 132 microfinance banks, four primary mortgage banks, and three finance companies, was revealed in the official gazette of the Federal Government.
The revocations were primarily due to the failure of the institutions to carry on their intended businesses within Nigeria for a continuous period of six months.
The revoked institutions were found to have fallen short of meeting the conditions and obligations imposed by the Central Bank of Nigeria, as outlined in the Banks and Other Financial Institutions Act (BOFIA) of 2020, Act No. 5.
Such non-compliance prompted the regulatory body to take action and withdraw their licences.
Among the primary mortgage banks that faced licence revocation were Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans, and Kogi Savings & Loans.
Similarly, HHL Invest & Trust Limited, TFS Finance Limited, and Treasures & Trust Limited were among the finance companies affected by the revocations.
In addition, several microfinance banks found themselves on the list of revoked licences, including Bluewhales Microfinance Bank, Igangan Microfinance Bank, Mainsail Microfinance Bank, Everest Microfinance Bank, Merit Microfinance Bank, Musharaka Microfinance Bank, and Nopov Microfinance Bank, among others.
The gazette went on to note that authority for revoking these licences was exercised by the Governor of the Central Bank of Nigeria, Godwin Emefiele, under the powers conferred upon the regulatory body by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) of 2020, Act No. 5.
