Article Summary
- The CBN has revoked the licence of 47 microfinance banks, including Eyowo.
- The apex bank said the licences were revoked because the companies had either remained inactive, insolvent, failed to render returns, or closed shop.
- In a similar development, the CBN also revoked the licences of 132 other companies operating as microfinance banks, finance companies, and primary mortgage banks.
The Central Bank of Nigeria (CBN) has withdrawn the microfinance licence of one of Nigeria’s digital banks, Eyowo, and 46 other companies.
According to the apex bank, the licences of the 47 microfinance banks were revoked because they had either remained inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six (6) months. The bank said this is in contravention of the Banks and other Financial Institutions Act (BOFIA), 2020, and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.
The CBN said the various actions taken by the Regulatory Authority to halt their persistent failure to carry on business had failed, hence the decision to revoke their licence.
Recommended reading: How to obtain a Microfinance Bank License from the CBN
CBN Governor’s Declaration
Announcing the revocation of the companies’ licence in a notice published on its website, the CBN Governor, Godwin Emefiele, based on the reasons cited declared:
- “I, Godwin Ifeanyi Emefiele, CON, Governor of the Central Bank of Nigeria, in the exercise of the powers conferred upon me by Section 12 of the Banks and Other Financial Institutions Act (BOFIA), 2020, hereby revoke the licenses of the 47 (forty-seven) Microfinance Banks.”
The list of the 47 banks
- Evangel MICROFINANCE BANK,
- DOMINION MICROFINANCE BANK,
- ANYA MICROFINANCE BANK,
- AKWENGWU MICROFINANCE BANK
- FADAMA FARMERS MICROFINANCE BANK
- SAL-FOL MICROFINANCE BANK
- MAUTECH MICROFINANCE BANK
- WASE MICROFINANCE BANK
- SMARTMICRO MICROFINANCE BANK
- AMBA MICROFINANCE BANK
- BRIDGE HOUSE MICROFINANCE BANK
- MONEYWELL MICROFINANCE BANK
- OTUKPO MICROFINANCE BANK
- OLOGBON MICROFINANCE BANK
- BESTWAY MICROFINANCE BANK
- BIYAMA MICROFINANCE BANK
- GREENLAND MICROFINANCE BANK
- FASILDAPO MICROFINANCE BANK
- SUNRISE MICROFINANCE BANK
- JOINT FARMERS MICROFINANCE BANK
- PROLIFIC MICROFINANCE BANK
- HALMOND MICROFINANCE BANK
- AJIKOBI MICROFINANCE BANK
- KOGI MICROFINANCE BANK
- EYOWO MICROFINANCE BANK
- ARISE MICROFINANCE BANK
- ISI-AKU MICROFINANCE BANK
- BMAZAZHIN MICROFINANCE BANK
- INI MICROFINANCE BANK
- NARICT MICROFINANCE BANK
- INTERLAND MICROFINANCE BANK
- EHOR MICROFINANCE BANK
- BIBAJINRE MICROFINANCE BANK
- GOLDEN FUNDS MICROFINANCE BANK
- GWADABAWA MICROFINANCE BANK
- IBA MICROFINANCE BANK
- EDUMANA MICROFINANCE BANK
- WEST-END MICROFINANCE BANK
- UMEJEI MICROFINANCE BANK
- MOUAU VASMUCS MICROFINANCE BANK
- JAMIS MICROFINANCE BANK
- NEW WORLD MICROFINANCE BANK
- ABESTONE MICROFINANCE BANK
- NSEHE MICROFINANCE BANK
- OSOGBO MICROFINANCE BANK
- CROSSOVER MICROFINANCE BANK
- DANGIZHI MICROFINANCE BANK
132 other licences revoked
In a similar development, the CBN said it also revoked the operating licences of 132 companies operating as Microfinance Banks, Finance Companies and Primary Mortgage Banks. Citing the reasons for the revocation, the CBN stated:
- “The Microfinance Banks, Finance Companies and Primary Mortgage Banks stated in Schedules I, II and III respectively, hereto, have:
- “(a) ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of 6 months.
- “(b) failed to fulfil or comply with the conditions subject to which their licences were granted; or
- “(c) failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.”