On Tuesday, 23th of May, 2023, the Central Bank of Nigeria released a list of financial institutions including 132 microfinance banks, 4 primary mortgage banks, and 3 finance companies whose operating licenses it revoked. According to the Central Bank of Nigeria, the reason behind the revocation of the institutions’ licenses was because they: 

 

1. ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of 6 months ;
2. failed to fulfil or comply with the conditions subject to which their licences were granted ; or
3. 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.

 

Which institution had their operating license revoked?

The four primary microfinance banks that had their licenses revoked are:

• Adamawa Savings & Loans.
• Kogi Savings & Loans.
• Resort Savings & Loans. 
• Safetrust Mortgage Bank.

The three finance companies affected include:

• HHL Invest & Trust Limited.
• TFS Finance Limited.
• Treasures & Trust Limited.

A few of the prominent microfinance banks included on CBN’s list are:

• Atlas Microfinance Bank
• Bluewhales Microfinance Bank 
• Eksu Microfinance Bank 
• Progressive Link Microfinance Bank 
• Brass Microfinance Bank Limited 
• Michika Microfinance Bank Limited 
• Seed Capital Microfinance Bank Limited 
• Eduek Microfinance Bank Limited 
• ABC Microfinance Bank Limited 
• Star Microfinance Bank Limited 
• Purple Money Microfinance Bank 

The full list of microfinance banks with revoked licenses can be found here. As a result of this update, these institutions are unable to legally carry out operations as financial institutions in Nigeria until the Central Bank of Nigeria approves their new license.

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