CBN revokes nine micro-finance banks’ licences in Niger

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.