Full List: CBN Revokes 132 Microfinance Banks’ Licences
The
Central Bank of Nigeria
, CBN, in line with the Banks and Other Financial Institutions Act (BOFIA), 2020, on Monday, May 22, ordered the revocation of the operating licences of over 100 microfinance banks and other financial institutions.
Making the announcement, the CBN governor, Godwin Emefiele stated that the bank came to the decision because the affected institutions ceased to conduct the type of business for which their licenses were issued within Nigeria.
He also said that they either failed to fulfil or comply with the conditions subject to which their licences were granted, or they failed to comply with the obligations imposed upon them by the CBN in accordance with the provisions of BOFIA 2020.
List Of Microfinance Banks’ Licences Revoked
1. Atlas Microfinance Bank
2. Bluewhales Microfinance Bank
3. Everest Microfinance Bank
4. Igangan Microfinance Bank
5. Mainsail Microfinance Bank
6. Merit Microfinance Bank
7. Minna Microfinance Bank
8. Musharaka Microfinance Bank
9. Nopov Microfinance Bank
10. Ohon Microfinance Bank
11. Premium Microfinance Bank
12. Royal Microfinance Bank
13. Statesman Microfinance Bank
14. Suisse Microfinance Bank
15. Vibrant Microfinance Bank
16. Virtue Microfinance Bank
17. Zamare Microfinance Bank
18. North Capital Microfinance Bank
19. Chidera Microfinance Bank
20. Excellent Microfinance Bank
21. Ni’ima Microfinance Bank
22. Cosmopolitan Microfinance Bank
23. Progressive Link Microfinance Bank
24. Trust One (Formerly Desmonarchy)
25. Ekuombe Microfinance Bank
26. First Index Microfinance Bank
27. Ola Microfinance Bank
28. Uli Microfinance Bank
29. Verdant Microfinance Bank
30. Aguleri Microfinance Bank Limited
31. Apeks Microfinance Bank Limited
32. Fahimta Microfinance Bank Limited
33. Manny Microfinance Bank Limited
34. Reality Microfinance Bank Limited
35. Surbpolitan Microfinance Bank Limited
36. Onyx Microfinance Bank Limited
37. Osina Microfinance Bank Limited
38. Olofin-Owena Microfinance Bank Limited
39. Zikado Microfinance Bank Limited
40. Prudential Co-Operative Microfinance Bank Limited
41. Peniel Microfinance Bank Limited
42. Taraba Microfinance Bank Limited
43. Brass Microfinance Bank Limited
44. Michika Microfinance Bank Limited
45. Ndiagu Microfinance Bank Limited
46. Northbridge Microfinance Bank Limited
47. FCT Microfinance Bank Limited
48. Omu-Aran Microfinance Bank Limited
49. Cherish Microfinance Bank Limited
50. BIPC Microfinance Bank Limited
51. Danels Global Microfinance Bank Limited
52. Bancorp Microfinance Bank Limited
53. Manna Microfinance Bank Limited
54. Moneywise Microfinance Bank Limited
55. Mercury Microfinance Bank Limited
56. New Age Microfinance Bank Limited
57. Pearl Microfinance Bank Limited
58. Zawadi Microfinance Bank Limited
59. Seed Capital Microfinance Bank Limited
60. Eduek Microfinance Bank Limited
61. EKSU Microfinance Bank Limited
62. Dakingari Microfinance Bank Limited
63. Ogoja Microfinance Bank Limited
64. Nwabosi Microfinance Bank Limited
65. Nuture Microfinance Bank Limited
66. Active Point Microfinance Bank Limited
67. Amoye Microfinance Bank Limited
68. Boluwaduro Microfinance Bank Limited
69. Iyede Microfinance Bank Limited
70. Mayfair Microfinance Bank Limited
71. Calabar Microfinance Bank Limited
72. Ighomo Microfinance Bank Limted
73. Hackman Microfinance Bank Limited
74. Idese Microfinance Bank Limited
75. Bridgeway Microfinance Bank Limited
76. Grassroot Microfinance Bank Limited
77. Surelife Microfinance Bank Limited
78. Tijarah Microfinance Bank Limited
79. Ic-Global Microfinance Bank Limited
80. Ejiamatu Microfinance Bank Limited
81. Briyth Covenant Microfinance Bank Limited
82. Nanka Microfinance Bank Limited
83. Cub Microfinance Bank Limited
84. BFL Microfinance Bank Limited
85. Umunne Microfinance Bank Limited
86. Oroke Microfinance Bank
87. Alkaleri Microfinance Bank Limited
88. Crowned Eagle Microfinance Bank Limited
89. Unifa Microfinance Bank Limited
90. Dadinkowa Microfinance Bank Limited
91. Ifesowapo Microfinance Bank Limited
92. Oaf Microfinance Bank Limited
93. Bama Microfinance Bank Limited
94. Ngala Microfinance Bank Limited
95. Iwoama Microfinance Bank Limited
96. Kada Microfinance Bank Limited
97. Keffi Microfinance Bank Limited
98. Nut-Endwell Microfinance Bank Limited
99. First Multiple Microfinance Bank Limited
100. SBDC Microfinance Bank Limited
101. Oros Capital Microfinance Bank Limited
102. Ozizza Microfinance Bank Limited B 465
103. Primera Credit Microfinance Bank Limited
104. Ifeanyichukwu Microfinance Bank Limited
105. Ihioma Microfinance Bank Limited
106. Josad Microfinance Bank Limited
107. Akpo Microfinance Bank Limited
108. Aiyepe Microfinance Bank Limited
109. ABC Microfinance Bank Limited
110. Star Microfinance Bank Limited
111. Purple Money Microfinance Bank Limited
112. Utuh Microfinance Bank Limited
113. Stallion Microfinance Bank Limited
114. Kjl Microfinance Bank Limited
115. Credit Afrique Microfinance Bank Limited
116. Cowries Microfinance Bank Limited
117. Lawebod Microfinance Bank Limited
118. Mabinas Microfinance Bank Limited
119. Business Support Microfinance Bank Limited
120. Ogbe-Ahiara Microfinance Bank Limited
121. Olofin Microfinance Bank Limited
122. Obosi Microfinance Bank Limited
123. Fiyinfolu Microfinance Bank Limited
124. Bishopgate Microfinance Bank Limited
125. Awka Microfinance Bank Limited
126. Zigate Microfinance Bank Limited
127. Esan Microfinance Bank Limited
128. Enugu-Ukwu Microfinance Bank Limited
129. Echo Microfinance Bank Limited
130. Ally Microfinance Bank Limited
131. Network Microfinance Bank Limited
132. Awgbu Microfinance Bank Limited
List Of Finance Companies Licences Revoked
1. HHL Invest & Trust Limited
2. TFS Finance Limited
3. Treasures & Trust Limited
List Of Primary Mortgage Banks Licences Revoked
1. Resort Savings & Loans
2. Safetrust Mortgage Bank
3. Adamawa Savings & Loans
4. Kogi Savings & Loans
Click
here to read more about the revoked licenses and the impact this decision has on depositors.
Microfinance Banks and the Nigerian economy
Microfinance
Banks provide loans
, savings, and other financial services to low-income individuals and small businesses.
They also play an important role in economic growth by providing access to financial services to people who would otherwise not have it. This can help to boost economic activity by increasing investment and consumption.
MFBs are known to be instrumental to reducing poverty by providing loans to people who would otherwise not be able to afford them. This can help people to start or expand their businesses, which can lead to increased income and employment.
In addition to economic growth and poverty reduction, MFBs can also help to improve social welfare by providing access to education, healthcare, and other essential services.
There is a growing body of evidence that shows that MFBs can have a positive impact on economic growth. A study by the World Bank found that MFBs can increase economic growth by up to 2%. The study also found that MFBs can reduce poverty by up to 15%.
Other more specific ways in which MFBs can contribute to economic growth include.
1. Increased investment
2. Increased consumption
3. Increased education through education loans
4. Improved healthcare
5. Reduced crime
A guide to understanding MFBs and their licenses.
In Nigeria, MFBs are
regulated by the CBN
. The CBN has a number of requirements that MFBs must meet in order to be licensed.
Before a microfinance bank license can be issued, the applicant is expected to fully comply with the CBN’s laid down principles and regulations.
It is important to note that there are three types of MFBs in Nigeria.
Unit Microfinance Bank
This type of microfinance bank requires at least N20,000,000 (Twenty Million Naira) as a capital base to start up and it is not permitted to operate by opening branches or money centres apart from its main bank office.
State Microfinance Bank
This is a lot higher than the unit microfinance bank. It requires a minimum of N100,000,000 (One Hundred Million Naira) in the capital base to start. It requires approval by the Central Bank of Nigeria to operate in the same state when a new branch wants to open.
● National Microfinance Bank
This requires the highest cash as startup capital than the first two mentioned above. A sum of N2,000,000,000 (Two Billion Naira) is required to start a microfinance bank in this category.
It can, however, operate in all states of the country, although it must be approved by the CBN for each branch that is to be opened.
Requirements for setting up an MFB in Nigeria
The various licensing requirement of microfinance bank in Nigeria includes the followings:
1. Application in writing to the Governor of the CBN accompanied by an application fee.
2. A deposit of capital requirement
3. Evidence that the source of the capital requirement is accepted to the CBN.
4. Detailed feasibility report and certificate of capital importation in case of foreign capital.
5. A copy of the Memorandum and Articles of Association of the company.
6. A letter of intent to pay for the subscribed shares of the proposed microfinance bank by its shareholders.
7. List of promoters/proposed shareholders, their addresses, as well as the names and address of their branch
8. Particulars of the proposed board of directors.
Upon submission of the various documents, the Central Bank of Nigeria will properly go through all the steps mentioned and go on to issue an approval in principle after interviewing the promoters.
The approval in principle shall be granted by the Central Bank of Nigeria if satisfied with the overall quality within three months of receipt of the application. However, the approval in principle does not grant permission to commence operation before the grant of a final license.
