List of CBN-Approved Microfinance Banks in Nigeria As Fake Bank With Branches in 4 States Exposed
- The CBN has over 700 microfinance banks in Nigeria, offering various services to millions across the country
- The drive for financial inclusion has also led to the rise of fake financial institutions posing as genuine banks
- The apex bank has uncovered one such fake bank and advised Nigerians to avoid falling victim
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
As part of its efforts to drive financial inclusion in Nigeria, the Central Bank of Nigeria over the years has issued licence to 737 microfinance banks (MFBs).
These banks offer various financial services such as loans, savings, insurance, and fund transfers, to low-income individuals and micro, small, and medium enterprises (MSMEs).
Source: Getty Images
List of requirements to own a bank
To obtain a licence from the CBN for a financial institution, applicants are generally required to provide:
- A curriculum vitae of all beneficial owners.
- Details of the institution’s shareholding structure for which the licence is being sought.
- For shareholders who are legal entities or arrangements, relevant incorporation documents showing the current shareholding structure, as well as information on directors, trustees, or fiduciaries.
- A completed beneficial ownership declaration form.
- Evidence of the ability to screen customers and transactions for risks related to money laundering, terrorism financing, or proliferation financing (ML/TF/PF).
- Evidence of the capacity to monitor, compile, and submit suspicious transaction reports (STRs) and other required regulatory filings.
Other details can be found here
Fake microfinance bank
Despite the CBN’s willingness to approve MFBs, some individuals have chosen to operate illegally.
In a recent statement signed by Hakama Sidi Ali (Mrs.), Acting Director of Corporate Communications, the CBN warned the public that Zuldal Microfinance Bank Limited is not licensed to operate any banking or microfinance business in the country.
According to the apex bank, Zuldal Microfinance Bank has reportedly been operating branches in Lagos, Abuja, Kaduna, and Kano, while falsely claiming to hold a CBN-issued licence.
The CBN clarified that the organisation is not a licensed microfinance bank and has no authorisation to conduct banking or microfinance activities in Nigeria.
The apex bank urged the public to disregard any licensing claims by Zuldal Microfinance Bank and avoid engaging in any financial transactions with it, stressing that anyone who does so does so at their own risk.
Source: Getty Images
List of approved Microfinance bank in Nigeria
- AACB Microfinance Bank Limited
- AB Microfinance Bank Limited
- Abia SME Microfinance Bank
- Abia State University Microfinance Bank Limited
- Abigi Microfinance Bank Limited
- Above Only Microfinance Bank
- Abubakar Tafawa Balewa University (ATBU) Microfinance Bank
- Abucoop Microfinance Bank Limited
- Abulesoro Microfinance Bank
- Accion Microfinance Bank Limited
- ACE Microfinance Bank Limited
- Achina Microfinance Bank Limited
- ADA Microfinance Bank Limited
- Adazi-Enu Microfinance Bank Limited
- Adazi-Nnukwu Microfinance Bank Limited
- Addosser Microfinance Bank
A comprehensive list can be accessed here.
Nigerian bank closes
Earlier, Legit.ng reported that Titan Trust Bank Limited has updated its social media accounts to reflect its new identity as Union Bank of Nigeria, marking the official end of its operations as a separate entity.
The change follows the CBN’s approval of the long-awaited merger between the two banks.
Union Bank confirmed that both organisations will now operate under its 108-year-old brand name.
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Source: Legit.ng
