BREAKING: CBN Revokes Nine Micro-Finance Banks’ Licences

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

North Central Secretary of the association, Mr. Sado Daniel, 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 regulatory exercise carried out by the Central Bank of Nigeria,’’ 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, a representative of the CBN in Minna, Hajia Hajara Mohammed, said that insider abuse was another huge factor that contributed to the failure of micro-finance banks across the country.

Hajia 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 is meant for.

“Until we stop using business money and loans to get married and buy clothes, businesses in the country will not progress,’’ she warned.

She called on the people to work toward ensuring that all loans collected are 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, the Rector of the polytechnic, Dr. Abubakar Dzukogi, said that the micro-finance bank was established with a capital base of N20m, adding that it would be increased to N50m 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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