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BFL Microfinance Bank has slammed a total of N5 million lawsuit on the Central Bank of Nigeria (CBN), and the Nigerian Deposit Insurance Corporation (NDIC). The bank is suing the regulatory bodies over revocation of its operating license.

While BFL is seeking general damages of N2 million, they also wants punitive damages of N3 million.

How it all started

The NDIC, in a notice posted on the bank’s door titled: Revocation of Banking Licence, dated September 30, state that the bank was declared insolvent and closed by the CBN and the NDIC appointed as the liquidator.

In an originating summons filed at the Federal High Court by its counsel, Velma Solicitors, the microfinance bank, prayed that the court declares the purported revocation null and void as the bank was not declared solvent.

BFL sought a declaration that they were not in default of any of the provisions of the Banks and Other Financial Institutions Act 2004 to warrant a revocation of its license.

The counsel to BFL also prayed that the court should determine whether, by the cumulative reading of Sections 12, 35, 36, 39 and 62 of the Banks and Other Financial Institutions Act 2004, the CBN had the right to revoke the license.

BFL’s Managing Director, Mrs. Ajayi Olu, in an affidavit, swore that the bank was not declared insolvent and neither had it been informed by the CBN or anybody whatsoever of any insolvency.

“The revocation was never communicated to us at any time, neither is it published in the official gazette.”– Olu

Nairametrics had reported that CBN hammer may fall on some finance houses in Nigeria.

In a released made available to the public, the apex bank had made known its intention to revoke the operating licenses of 182 financial institutions operating in the country.

Deal book 300 x 250

CBN announced this barely a week after it revoked Skye Bank’s operating license.

Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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