The Central Bank of Nigeria (CBN) has revoked the operating licences of Creditville Microfinance Bank, Safegate Microfinance Bank and 44 other banks in Nigeria.
The revocation, which takes immediate effect, was announced in a statement issued on Wednesday by Hakama Sidi-Ali, the acting director of corporate communications at the CBN.
According to the apex bank, the decision was approved by Olayemi Cardoso, the governor of the CBN in line with the powers conferred on the bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The CBN said the affected banks failed to meet the regulatory requirements necessary to continue operating as licensed financial institutions.
It explained that the licences were withdrawn due to one or more infractions, including insufficient assets to meet liabilities, closure of operations without regulatory approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, and inability to maintain the minimum capital requirement unimpaired by losses.
The apex bank stated that the action forms part of its ongoing efforts to safeguard the stability of Nigeria’s financial system, protect depositors and ensure strict compliance with banking regulations.
“The revocation of the licences is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements,” the statement read.
The CBN reaffirmed its commitment to promoting a safe, sound and resilient financial system, adding that it would continue to take appropriate supervisory and regulatory actions where necessary to maintain public confidence in Nigeria’s banking sector.
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