Central Bank of Nigeria (CBN) on Friday revoked the licences of 224 micro finance banks for being 'terminally distressed and technically insolvent'. CBN Deputy Governor Kingsley Moghalu announced the decision to newsmen in the capital city of Abuja, saying the banks were among the 820 micro finance banks operating in the country.

He said 178 of the banks were technically insolvent while 46 were found to be terminally distressed and had closed operations for six months.

According to him, the total deposited amount in the 224 banks is 18.2 billion Naira, the total loan is 19.6 billion Naira, while the shareholders' fund was 6.1 billion Naira (150 Naira=US$1).

'The factors that contributed to the unsoundness of the MFBs were attributed to high level of non-performing loan resulting in high portfolio at risk which had impaired the capital, gross under-capitalisation in relation to level of operations, poor corporate governance and incompetent boards,' he said.

Moghalu said the directors and management of the closed banks who have abused their positions would be handed over to the law enforcement agencies for investigation and prosecution.

Central Bank of Nigeria (CBN) on Friday revoked the licences of 224 micro finance banks for being 'terminally distressed and technically insolvent'. CBN Deputy Governor Kingsley Moghalu announced the decision to newsmen in the capital city of Abuja, saying the banks were among the 820 micro finance banks operating in the country.

He said 178 of the banks were technically insolvent while 46 were found to be terminally distressed and had closed operations for six months.

According to him, the total deposited amount in the 224 banks is 18.2 billion Naira, the total loan is 19.6 billion Naira, while the shareholders' fund was 6.1 billion Naira (150 Naira=US$1).

'The factors that contributed to the unsoundness of the MFBs were attributed to high level of non-performing loan resulting in high portfolio at risk which had impaired the capital, gross under-capitalisation in relation to level of operations, poor corporate governance and incompetent boards,' he said.

Moghalu said the directors and management of the closed banks who have abused their positions would be handed over to the law enforcement agencies for investigation and prosecution.
Central Bank of Nigeria (CBN) on Friday revoked the licences of 224 micro finance banks for being 'terminally distressed and technically insolvent'. CBN Deputy Governor Kingsley Moghalu announced the decision to newsmen in the capital city of Abuja, saying the banks were among the 820 micro finance banks operating in the country.

He said 178 of the banks were technically insolvent while 46 were found to be terminally distressed and had closed operations for six months.

According to him, the total deposited amount in the 224 banks is 18.2 billion Naira, the total loan is 19.6 billion Naira, while the shareholders' fund was 6.1 billion Naira (150 Naira=US$1).

'The factors that contributed to the unsoundness of the MFBs were attributed to high level of non-performing loan resulting in high portfolio at risk which had impaired the capital, gross under-capitalisation in relation to level of operations, poor corporate governance and incompetent boards,' he said.

Moghalu said the directors and management of the closed banks who have abused their positions would be handed over to the law enforcement agencies for investigation and prosecution.
Click here to view or download,the list of the revoked 224 MFBs as published by the CBN.