CBN Appoints NDIC To Liquidate 46 Microfinance Banks

Following the revocation of licences of some micro finance banks in the country, the apex bank has appointed the Nigeria Deposit Insurance Corporation, NDIC as the official liquidator.

The apex said its action is pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act 2023.

On Wednesday, the Nigerian apex bank revoked operating licenses of 46 Microfinance Banks (MfBs) over weak asset positions.

According to the CBN, the licences withdrawals took immediate effect, in line with CBN’s powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The withdrawal was contained in a statement issued by CBN Acting Director, Corporate Communications Department, Mrs. Sidi-Ali, Hakama , who said some of the affected banks were battling to meet customers’ cash demsnds.

She stated that some MFBs insufficient have also  closed their operations without the apex bank’s approval.

“The revocation was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” the apex bank said in the statement.

The CBN said it remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system.”

The affected MFBs include Merchant Microfinance Bank and Abia SME Microfinance Bank in Abia State, Janmaa Microfinance Bank in Kwara State, Busu Microfinance Bank and Bejin-Doko Microfinance Bank in Niger State, Gold Microfinance Bank, Chanelle Microfinance Bank, Safegate Microfinance Bank, and  Minji-Se Churchill Microfinance Bank in Rivers state.

Others are, Supreme Microfinance Bank, Creditville Microfinance Bank, MBAG Microfinance Bank, Verdant Microfinance Bank and Entrepreneur Microfinance Bank in Lagos State, Zain Microfinance Bank (formerly Dawakin Tofa Microfinance Bank), Bompai Microfinance Bank, Ajwa Microfinance Bank (formerly Gezawa Microfinance Bank), Now Now Digital Microfinance Bank, Minjibir Microfinance Bank.