NDIC Commences Closure Of 42 Microfinance Banks After CBN’s Directive

 

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the closure of 42 microfinance banks after a directive from the Central Bank of Nigeria (CBN).

The NDIC had earlier on Friday announced on its website that the CBN has revoked the operating licences of 42 microfinance banks.

It confirmed to Channels Television on Monday that the closure of the banks has commenced.

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“This is to inform the depositors, creditors, shareholders, and the general public that the operating licenses of the under listed Forty-Two (42) Microfinance Banks (MFBs) have been revoked by the Central Bank of Nigeria (CBN) effective 12th November 2020.

“The Nigeria Deposit Insurance Corporation (NDIC), the Official Liquidator of the banks whose licenses were recently revoked, is in the process of closing the listed banks and pay their insured Depositors,” the NDIC statement read in part.

The NDIC, therefore, request that all depositors of these banks should visit the closed banks’ addresses and meet NDIC officials for the verification of their claims, commencing from Monday, 21st December 2020 till Thursday, 24th December 2020.

 

The affected banks are listed below:

1        HEDGEWORTH MFB  GUOBA PLAZA SUITE B06, – 171, A.E. EKUKINAM STREET, BY CHISCO, UTAKO, ABUJA

2        FUTURE GROWTH MFB REAL TOWER PLAZA, PLOT 1121 OBAFEMI AWOLOWO WAY, UTAKO, ABUJA

3        BAGWAI MFB BAGWAI-SHANONO ROAD, BAGWAI LGA, KANO

4        ERE CITY MFB  ERE-IJESHA/IIIAHUN ROAD, ERE-IJESHA, ORIADE LGA, OSUN

5        CAFON MFB GARKI POLICE BARRACKS, GARKII, FCT, ABUJA

6        AKCOFED MFB EKIT ITAM II (BESIDE WATER BOARD), P. O. BOX 2048, UYO, AKWA-IBOM STATE

7        GUFAX MFB N0. 3 UDOTUNG UBO STREET UYO, AKWA IBOM STATE

8        PARTNERSHIP MFB 107 UPPER IWEKA ROAD, ONITSHA, ANAMBRA STATE

9        ICB MFB    IIIAH-ASABA ROAD, OSHIMILI NORTH LGA, IIIAH, DELTA STATE

10      ONIMA MFB NIPOST BUILDING, EKEOCHA ONICHA, EZINIHITTE MBAISE LGA, IMO STATE

11      HOMETRUST (NATIONS) MFB 76, ORLU ROAD, NKWERE, IMO STATE

12      RINGIM MFB OPP. RINGIM CENTRAL MARKET, RINGIM, JIGAWA STATE

13      BIGTHANA MFB 6, ALI AKILU ROAD, KADUNA

14      ROGO MFB ROGO TOWN, ROGO LGA, KANO STATE

15      MAKODA MFB  NO 15, KOGUNA TOWN, MAKODA LGA, KANO

16      TAKAI MFB TAKAI TOWN, TAKAI LGA, KANO STATE

17      BEBEJI MFB NO. 10 GIDAN IYAN, BEBEJI TOWN, BEBEJI L.G.A., KANO STATE

18      AJINGI MFB NO. 10 HAKIMI STREET, AJINGI TOWN, AJINGI LGA, KANO STATE

19      GARKO MFB  3, GARKO TOWN, KANO

20      KANGIWA MFB KANGIWA TOWN, KANGIWA LGA, KEBBI STATE

21      AUGIE MFB  AUGIE TOWN, AUGIE LGA, KEBBI STATE

22      MOPA MFB  SILAS BAMIDELE DANIYAN HOUSE, KABBA-ILORIN ROAD, MOPA, KOGI-STATE

23      SOLID BASE MFB  EKIRIN ADDE, IJUMU LGA, KOGI STATE

24      ULTIMATE BENEFIT MFB  150C, OKENE KABBA ROAD, LOKOJA, KOGI

25      OVIDI MFB NO. 1, ATTA ROAD, OKENE, KOGI STATE

26      KIRFI MFB  KIRFI TOWN, KIRFI LGA, BAUCHI

27      CREDIT EXPRESS MFB  27, KAKAWA STREET, LAGOS

28      KING SOLOMON MFB GOD BLESS NIGERIA HOUSE, 117/119, WETSERN AVENUE, IPONRI, LAGOS

29      RIGGS MFB  PLOT 5, IMAN ABIB ADETORO STREET, OFF AJOSE ADEOGUN STREET, V.I., LAGOS

30      BILLIONAIRE BLUE BRICKS MFB APERIN HOUSE (2ND FLOOR) BLOCK I, PLOT 27, BUDO LAYOUT AJIWE, LEKKI EPE EXPRESSWAY, AJAH, LAGOS STATE

31      SUSU MFB  34, COMMERCIAL AVENUE SABO, YABA, LAGOS

32      WEALTHSTREAM MFB  AQUARIUS BLOCK, ELEGANZA PLAZA, GROUND FLOOR, LEFT WING 1 COMMERCIAL ROAD, APAPA, LAGOS

33      AGUDA TITUN MFB  21, SHONOLA STREET, AGUDA TITUN, OGBA, LAGOS

34      SAPPHIRE MFB 111, ABAK ROAD, UYO, AKWA IBOM STATE

35      METRO MFB  15, OTUNUBI STREET, OFF HARUNA, OGBA, IKEJA, LAGOS

36      MOUNTAIN TOP MFB PROGRESS BLOCK, SHOP A102, AFRICAN TYRE VILLAGE, OPP. APT TRADE FAIR COMPLEX, LAGOS/BADAGRY EXPRESSWAY, LAGOS

37      UNYOGBA MFB  1, ALOMA ROAD, OPP. MKT. SQ., EJULE, OFU LGA, KOGI STATE

38      WAPO MFB OKENE-LOKOJA ROAD, NAGAZI, ADAVI LGA, OKENE, KOGI STATE

39      IBOGUN MFB IBOGUN EGBEDA, IFO LGA, OGUN STATE

40      KOREDE MFB  NO. 3, LUWOYE STREET, IGBOTAKO, ONDO STATE

41      AHETOU MFB  26, EREMA ROAD, BYEPASS, AKABUKA, OGBA/EGBEMA/NDONI LGA, RIVERS STATE

42      FUFORE MFB  NO. 25 GURIN ROAD, FUFORE LGA, ADAMAWA, YOLA STATE

CBN Extends Minimum Capital Requirement Deadlines For Microfinance Banks

A photo showing the CBN headquarters in Abuja. Photo: Channels TV/ Sodiq Adelakun.

 

 

The Central Bank of Nigeria (CBN) has extended the deadlines for compliance with the revised minimum capital requirements by Microfinance Banks (MFBs) in the country.

This is contained in a circular to all microfinance banks dated April 29 and signed by the Director of CBN Financial Policy and Regulation Department, Kevin Amugo.

Amugo noted that the apex bank had issued a set of deadlines in an earlier circular dated March 7, 2019.

He explained that the review was a result of the effect of the coronavirus (COVID-19) pandemic on economic activities in the country.

According to the CBN official, the new directive affects microfinance banks operating in rural, unbanked and under-banked areas, urban and high-density banked areas, as well as the state and national MFBs.

Read the circular issued by the nation’s financial regulator below:

RE: REVIEW OF MINIMUM CAPITAL REQUIREMENTS FOR MICROFINANCE BANKS IN NIGERIA

The Central Bank of Nigeria in consideration of the coronavirus (COVID-19) pandemic on economic activities has revised the deadlines for compliance with the minimum capital requirements for Microfinance Banks (MFBs) in Nigeria communicated vide its circular dated March 7, 2019 referenced FPRD/DIR/GEN/CIR/07/024.

Consequently, the CBN has extended the deadlines for the compliance with the revised minimum capital requirements for all categories of MFBs by one year as follows:

  • MFBs operating in rural, unbanked and under-banked areas (Tier 2) shall meet the N35 million capital threshold by April 2021 and N50 million by April 2022;
  • MFBs operation in urban and high-density banked areas (Tier 1) are expected to meet the N100 million capital threshold by April 2021 and N200 million by April 2022;
  • State MFBs shall increase their capital to N500 million capital threshold by April 2021 and N1 billion by April 2022; and
  • National MFBs are expected to meet minimum capital of N3.5 billion capital by April 2021 and N5 billion by April 2022.

Please be guided accordingly.

Kevin N. Amugo

Director, Financial Policy and Regulation Department

CBN Reviews Capitalisation Of Tier 2 Microfinance Banks

CBN Reviews Capitalisation Of Tier 2 Microfinance Banks

 

The Central Bank of Nigeria (CBN) has reviewed the minimum capital base of Tier 2 Microfinance Banks (MFBs) across the country to N50m, informing them to recapitalise by April 2021.

The apex bank, however, maintained the capital base of Tier 1 for State and National Microfinance Banks earlier issued on October 22, 2018.

In a circular to all microfinance banks on Monday by the Director, CBN Finance Policy and Regulations, Mr Kevin Amugo, the financial regulator Tier 2 MfBs must meet a N35m capital threshold by April 2020 and N50m by April 2021.

“The Central Bank of Nigeria has revised the categories of microfinance banks with a view to ensuring continued operations of microfinance banks in the rural, unbanked and underbanked areas of the economy,” the CBN said.

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It explained further, “Accordingly, the unit microfinance banks shall comprise two Tiers: Tier 1-unit microfinance bank which shall operate in the urban and high-density banked areas of the society; and Tier 2-unit microfinance banks which shall operate only in the rural, unbanked or underbanked areas.

“Tier 1-unit microfinance banks must meet a N100m capital threshold by April 2020 and N200m by April 2021.”

The apex bank noted that the Tier 2-unit microfinance banks must meet a N35m capital threshold by April 2020 and N50m by April 2021.

According to it, state microfinance banks shall increase its capital to N500m by April 2020 and N1 billion by April 2021.

“A national microfinance bank shall hold a capital of N3.5 billion by April 2020 and N5 billion by April 2021,” it added.

The CBN had raised the minimum capital base of MFBs on October 22, 2018, explaining that the revision became inevitable as the sector had been contending with challenges such as inadequate capital base, weak corporate governance, and ineffective risk management practices, among others.

Explore Opportunities In Rural Areas, Kwara Governor Challenges Banks

Kwara State, Abdulfatah Ahmed, Microfinance BankThe Kwara State Governor, Abdulfatah Ahmed, has tasked Micro-finance Banks in Nigeria, to explore various opportunities in the rural areas to guarantee inclusive banking and stimulate the economy.

Governor Ahmed made the call while receiving the cheque for the dividend accrued to the state government from the Chairman, Board of Director of the Micro-finance Bank, who is also the Kwara State Commissioner for Finance, Mr Demola Banu.

Speaking on Friday at the Government House in Ilorin, the state capital in southwest Nigeria, Governor Ahmed highlighted the benefits of inclusive banking.

He said that leveraging on the opportunity of inclusive banking would not only help contribute to the GDP, but would also enhance movement of cash from surplus zone to deficit zone.

The Governor expressed satisfaction that the bank was able to achieve purpose of its establishment of contributing to the state economic viability.

He revealed the government’s intention to patronise the bank for its small and medium loan to the public, with a view of improving the bank.

Ekiti Partners Microfinance Banks For CBN SME Loan Scheme Monitoring

CBNEkiti State Commissioner for Finance, Toyin Ojo, has confirmed the state’s partnership with Microfinance Banks for effective distribution and proper monitoring of the 2billion Naira Central Bank of Nigeria (CBN) Micro Business and SMEs Loan Scheme.

Speaking in Ado Ekiti during a meeting with the representatives of the Microfinance Banks, Ojo reiterated the resolve of the Fayose-led administration to turn the fortunes of the state around through promotion of Small and Medium Scale businesses.

According to him, the Ekiti State Government has identified Microfinance Banks as the machinery through which the loans can be accessible to the prospective beneficiaries, stressing that the focus was to have direct impact on the lives of the people at the grassroots.

He gave an assurance that the procedure and prerequisites would be comfortable for intending beneficiaries of the loan scheme.

In a related development, the Permanent Secretary of the Ministry of Commerce, Industries and Cooperatives, Mr Kola Ajumobi, has said that the 2billion naira CBN microfinance business and SME loan scheme would only be accessible through the organized cooperative societies for artisans, farmers and market women among others.

Mr Ajumobi disclosed that the State Government had given 60 percent priority to women on the loan scheme and advised market women and other organized women cooperative societies in the state to take advantage of the opportunity provided by the CBN scheme to boost their businesses.