CBN Revoke Licenses of 224 Micro-Finance Banks, N18.2B Trapped

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ABUJA, Sept 25, (THEWILL) - A whopping sum of N18.2 Billion has been declared trapped in the over two hundred micro-finance banks in Nigeria whose licenses were revoked a few days ago by the Central Bank of Nigeria (CBN).

Disclosing this on Friday in Abuja, the Deputy Governor of CBN in charge of Financial System Stability (FSS), Dr. Kingsley Chiedu Moghalu said the micro finance banks were not technically sound hence the revocation, noting that the Nigerian Deposit Insurance Corporation would immediately step in to ensure that depositors who were insured are paid what is obtainable within the ambit of the law.

Moghalu said that the Economic and Financial Crimes Commission (EFCC) and other security apparatus of government would be brought in to thoroughly investigate those behind failures of these micro finance banks as many depositors now throng to various micro-finance banks in Abuja to ask for their deposits.

The CBN Governor had on Tuesday announced the revocation of operational licences of these banks during the 72nd meeting of the Monetary Policy Committee in Abuja. He said that the development had become necessary due to below average performance of the institutions that have tended to bring the financial sector of the Nigerian economy into disrepute.