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CBN vows to revoke 154 microfinance banks’ operating licences

CBN vows to revoke 154 microfinance banks’ operating licences

- The CBN has vowed to revoke the operating licences of some microfinance banks

- The national bank said the affected microfinance firms will be liquidated for offences ranging from shop closing to recapitalisation

- Banks affected include mortgage banks and other finance firms across the federation

The apex bank in the country, Central Bank of Nigeria (CBN), has vowed to revoke the operating licences of not less than 182 micro finance institutions across the federation.

The CBN in a list released on Wednesday, September 26, said about 154 microfinance banks, including six mortgage banks, and other finance companies will be affected.

Legit.ng notes that 62 of the microfinance banks had already closed down, about 74 of them are insolvent while 12 are terminally distressed. Similarly, six of the financial firms are voluntary liquidated.

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According to the Nigeria's apex bank, the primary mortgage banks that would be due for revocation are Accord Savings Loan Limited in Lagos and Ahocol Savings and Loans Limited in Anambra

Other mortgage banks listed for revocation are state-owned Trans Saving and Loan Limited in Bayelsa. Royal Saving and Loans Limited in Delta state will also be affected for closing its shop. Amex Savings and Loans Limited in Lagos is also affected for its failure to recapitalise.

Another finance institution at the jawbone of Central Bank is Supreme Savings and Loans Limited also in Lagos.

The affected banks are financial institutions across the federation.

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Meanwhile, Legit.ng earlier reported that the CBN had warned the federal and states government of the consequences of not saving for what it termed the ‘rainy day’.

The warning came as oil prices maintained a sustained recovery averaging $57 per barrel with consequent increase in oil revenue distributed monthly to the federal, states and local governments.

Speaking through its governor at its 260th Monetary Policy Committee (MPC) which was the first for 2018, the CBN frowned at what it described as “growing FAAC distribution” in oil revenue, without a robust savings programme to wade-off future shocks from falling oil prices since Nigeria’s economy was still largely dependent on oil revenue.

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Source: Legit.ng

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