The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has approved the cancellation of licences issued to 132 microfinance banks operating in Nigeria.
Emefele approved their revocation on Monday, according to a statement released by the CBN on Tuesday, as the financial regulator clamps down on microfinance banks that are not complying with the apex bank’s regulation and requirements of their licence.
Giving reasons for the withdrawal of their licences, CBN said: they “ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of 6 months.
“failed to fulfil or comply with the conditions subject to which their licences were granted,” CBN said, adding that the microfinance banks also “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.
“NOW THEREFORE, I, Godwin Ifeanyi Emefiele, CON, Governor of the Central Bank of Nigeria, in exercise of the powers conferred on the Central Bank of Nigeria under Section 12 of BOFIA 2020, Act No.5, hereby revoke the licences of the Microfinance Banks”.
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