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CBN revokes licences of 83 microfinance banks

list of microfinance banks

February 21, 2014. Ifeanyi Onuba,

The Central Bank of Nigeria has announced the revocation of licences of 83 microfinance banks operating in the country.

The closure of the affected institutions, according to the central bank took effect from December 20, 2013.

In view of the closure, the Nigeria Deposit Insurance Corporation has been appointed the provisional liquidator for their wind down.

The corporation confirmed the development on Thursday.

Findings on Thursday showed that the NDIC had commenced the process of winding down the activities of the affected MFBs.

The corporation said a public announcement would soon be made to communicate the process of verification and payment of insured deposits in the affected MFBs to the depositors.

Although the NDIC failed to state the reasons why the licences were revoked, investigations showed that their inability to recapitalise was responsible for the closure.

The CBN had given the MFBs December

31 to recapitalise.

The CBN had also categorised them under different amounts of capital base requirement.

The first group, the Unit Trust MFBs, is expected to have a capital base of N20m. Those in this category, according to the CBN, are expected to operate from only their head offices.

The second category, the state level MFBs, is licensed to operate from only a state of the federation and it is expected to have a minimum capital of N100m.

The third category of the MFBs is licensed to operate at the national level. Those in this group are allowed to operate throughout the federation and are expected to have a capital base of N2bn.

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