“Central Bank of Nigeria (CBN) Revokes Eyowo’s Microfinance Licence and 46 Others for Non-Compliance”

The Central Bank of Nigeria (CBN) has announced the revocation of the microfinance license of Eyowo, a digital bank, along with 46 other companies. The CBN stated that these licenses were withdrawn due to the banks’ prolonged periods of inactivity, insolvency, failure to submit required reports, closure of operations, or cessation of the authorized banking activities for which they were licensed. These actions by the banks were found to be in violation of the Banks and Other Financial Institutions Act (BOFIA), 2020, and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.

Despite the Regulatory Authority’s efforts to address the persistent non-compliance of these banks, their failure to rectify the situation led to the CBN’s decision to revoke their licenses.

CBN Governor’s Declaration

Announcing the revocation of the companies’ license in a notice published on its website, the CBN Governor, Godwin Emefiele, based on the reasons cited declared:

“I, Godwin Ifeanyi Emefiele, CON, Governor of the Central Bank of Nigeria, in the exercise of the powers conferred upon me by Section 12 of the Banks and Other Financial Institutions Act (BOFIA), 2020, hereby revoke the licenses of the 47 (forty-seven) Microfinance Banks.”

The list of the 47 banks

1. Evangel MICROFINANCE BANK,
2. DOMINION MICROFINANCE BANK,
3. ANYA MICROFINANCE BANK,
4. AKWENGWU MICROFINANCE BANK
5. FADAMA FARMERS MICROFINANCE BANK
6. SAL-FOL MICROFINANCE BANK
7. MAUTECH MICROFINANCE BANK
8. WASE MICROFINANCE BANK
9. SMARTMICRO MICROFINANCE BANK
10. AMBA MICROFINANCE BANK
11. BRIDGE HOUSE MICROFINANCE BANK
12. MONEYWELL MICROFINANCE BANK
13. OTUKPO MICROFINANCE BANK
14. OLOGBON MICROFINANCE BANK
15. BESTWAY MICROFINANCE BANK
16. BIYAMA MICROFINANCE BANK
17. GREENLAND MICROFINANCE BANK
18. FASILDAPO MICROFINANCE BANK
19. SUNRISE MICROFINANCE BANK
20. JOINT FARMERS MICROFINANCE BANK
21. PROLIFIC MICROFINANCE BANK
22. HALMOND MICROFINANCE BANK
23. AJIKOBI MICROFINANCE BANK
24. KOGI MICROFINANCE BANK
25. EYOWO MICROFINANCE BANK
26. ARISE MICROFINANCE BANK
27. ISI-AKU MICROFINANCE BANK
28. BMAZAZHIN MICROFINANCE BANK
29. INI MICROFINANCE BANK
30. NARICT MICROFINANCE BANK
31. INTERLAND MICROFINANCE BANK
32. EHOR MICROFINANCE BANK
33. BIBAJINRE MICROFINANCE BANK
34. GOLDEN FUNDS MICROFINANCE BANK
35. GWADABAWA MICROFINANCE BANK
36. IBA MICROFINANCE BANK
37. EDUMANA MICROFINANCE BANK
38. WEST-END MICROFINANCE BANK
39. UMEJEI MICROFINANCE BANK
40. MOUAU VASMUCS MICROFINANCE BANK
41. JAMIS MICROFINANCE BANK
42. NEW WORLD MICROFINANCE BANK
43. ABESTONE MICROFINANCE BANK
44. NSEHE MICROFINANCE BANK
45. OSOGBO MICROFINANCE BANK
46. CROSSOVER MICROFINANCE BANK
47. DANGIZHI MICROFINANCE BANK

132 other licences revoked

In a similar development, the CBN said it also revoked the operating licences of 132 companies operating as Microfinance Banks, Finance Companies and Primary Mortgage Banks. Citing the reasons for the revocation, the CBN stated:

• “The Microfinance Banks, Finance Companies and Primary Mortgage Banks stated in Schedules I, II and III respectively, hereto, have:
• “(a) ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of 6 months.
• “(b) failed to fulfil or comply with the conditions subject to which their licences were granted; or
• “(c) 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.”