The Central Bank of Nigeria (CBN) recently revoked the operating licenses of 42 microfinance banks (MFBs) in the country. The Nigeria Deposit Insurance Corporation has been liquidating the MFBs, including by meeting with depositors to verify their claims for reimbursement. Among the banks that have been shut down are: Hedgeworth MFB in Utako, Abuja; King Solomon MFB in Iporni, Lagos; and Hometrust MFB in Nkwerre, Imo.
The Central Bank of Nigeria was established in 1958 by an act of parliament. Its mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government.” As of December 2019, CBN reported total assets of NGN 302 billion (USD 79.4 billion).
By Sai Bommineni, Research Associate
Sources and Additional Resources
Nigeria Deposit Insurance Corporation announcement
https://ndic.gov.ng/notice-of-closure-of-42-microfinance-banks-mfbs/
Central Bank of Nigeria homepage
https://www.cbn.gov.ng
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