BREAKING News: CBN Revokes Licences Of Nine Micro-Finance Banks

Nine out of 34 Micro-Finance banks in Nigeria have had their licences revoked by the Central Bank of Nigeria.

CBN

 

The National Association of Micro Finance Banks on Monday said that nine out of the 34 micro finance banks in Niger have lost their operational banking licences.

 

Mr Sado Daniel, North Central Secretary of the association made the remark in Bida while inaugurating a micro-finance bank established by the Federal Polytechnic, Bida.

 

“These micro-finance banks lost their licences because they fell short during the regulation exercise carried out by the Central Bank of Nigeria (CBN),’’ he said.

 

He said that non adherence to corporate governance contributed to the collapse of the banks, urging the management and staff members of the new bank to adhere strictly to the rules establishing it.

“Banks do not die, people kill them; please do not kill the Federal Polytechnic Bida Micro-Finance Bank; ensure you adhere strictly to the rules of the game,’’ he said.

 

Similarly, Hajia Hajara Mohammed, a representative of the CBN in Minna, said that insider abuse was another huge factor that contributed to the failure of micro-finance banks across the country.

 

Mohammed urged business people to stop diverting loans collected from banks to other purposes such as marriage among other things different from what the loan was meant for.

 

According to her, “until we stop using business money and loans to get married and buy clothes, businesses in the country will not progress.’’

 

She called on the people to work toward ensuring that all loans collected were paid back to enable them to benefit more.

“If you don’t return your loans there is no way you will benefit from loans being made available by the Federal Government through the CBN,’’ she said.

 

Earlier, Dr Abubakar Dzukogi, the Rector of the polytechnic, said that the micro-finance bank was established with a capital base of N20 million adding that it would be increased to N50 million by the year 2019.

 

Dzukogi, who is also Chairman, Board of Directors of the micro-finance bank, said the bank would make banking easy for students and staff members of the polytechnic.

 

He also said that the measure would ease the cashless policy being planned by the CBN.

 

(NAN)

                                            

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