A notification was passed on Wednesday by the Central Bank of Nigeria to revoke the operating licences of 182 other financial institutions in the country. But the breakdown of institutions involved makes it clear 154 of the affected institutions are microfinance banks; six are primary mortgage banks, while the remaining 22 are finance companies.
According to CBN, 62 of the microfinance banks had already closed shop, 12 were terminally distressed, 74 became insolvent, while 6 voluntarily liquidated.
Accord Savings and Loans Limited in Lagos that failed to recapitalize was listed by CBN as the primary mortgage banks for revocation, and Ahocol Savings and Loans Limited in Anambra (state government-owned) that closed shop.
Other mortgage banks for revocation are Trans-Atlantic Savings and Loans Limited in Bayelsa that became insolvent; Royal Savings and Loans Limited in Delta State that also closed shop; Amex Savings and Loans Limited in Lagos that failed to recapitalize; and Supreme Savings and Loans Limited also in Lagos that closed shop.
The CBN disclosed that eight finance companies voluntary liquidated; 13 failed to recapitalize; while one became insolvent.