By Chuka Madu
The Central
Bank of Nigeria (CBN) has revoked the operating licences of 46
microfinance banks across the country, including 13 in Kano State, sparking
concern among customers and small business owners who depend on the
institutions for savings and affordable loans.
The regulator said the decision
took effect on July 1, 2026, under the provisions of the Banks and Other
Financial Institutions Act (BOFIA), 2020. Approved by CBN Governor Olayemi Cardoso, the move followed the banks'
failure to meet the regulatory standards required to continue operating.
According
to the apex bank, the affected institutions were found to have serious
shortcomings. These included having insufficient assets to meet liabilities,
shutting down operations without regulatory approval, remaining inactive for
long periods, failing to begin operations within the required timeframe after
receiving licences, and falling below the minimum capital requirement because
of accumulated losses.
Reacting
to the development, economist and lecturer Abdulnasir
Turawa Yola said the CBN does not take such action lightly. He explained
that the withdrawal of a banking licence usually signals major financial or
governance problems that could threaten customers' funds if left unchecked.
Dr Yola
warned that although the Nigeria Deposit Insurance
Corporation protects depositors when banks fail, customers may not
always recover all their money. He noted that creditors are usually paid first,
followed by depositors, while shareholders are often the last to receive any
remaining assets, making bank failures a difficult experience for everyone
involved.
Among
the 13 affected microfinance banks in Kano are Zain MFB, Bompai MFB, Ajwa MFB,
NOW Digital MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB,
Sycamore MFB, Tofa MFB, Kanopoly MFB, Bellbank MFB and Esteem MFB.
For many small traders, the closures are worrying. Ibrahim
Sulaiman, an ice seller in Nasarawa Local Government Area, said microfinance
banks have helped countless small businesses survive by providing modest loans
that commercial banks often do not offer. While some residents believe the
closures will affect only a limited number of customers, many entrepreneurs
fear reduced access to affordable credit could make running their businesses
even more difficult.
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