Massive rush as CBN Closes 103 Failed Microfinance Banks

• A full list of failed microfinance banks with offices across the country has been revealed
• The Central Bank of Nigeria shut down the microfinance banks after they failed to meet requirements
• Microfinance banks offer banking service to low-income individuals or groups who otherwise would have no other access to financial services

The Central Bank of Nigeria (CBN) has closed 103 microfinance banks in different parts of the country over the years.

Although the time for closing the banks has not yet been determined, the decision is understood to be part of CBN’s efforts to clean up the financial sector and rid it of non-performing banks that pose a risk to depositors’ funds.

CBN initiates such measures in cases where banks, whether commercial or microfinance, are discovered to be operating below regulatory standards and cannot fulfill the required conditions to maintain operations.

The Nigeria Deposit Insurance Corporation is responsible for safeguarding depositors’ funds to prevent losses.

Location of the failed microfinance banks The breakdown reveals that Lagos had the highest number of closed microfinance banks, with 31 banks shut down, followed by Abia (4), Abuja (3), Adamawa (1), Akwa Ibom (2), Anambra (7), Bayelsa (2), Cross River (1), Delta (3).

Others are Edo (3), Ekiti (1), Enugu (1), Imo (6), Jigawa (1), Kaduna (2), Katsina (1), Kebbi (2), Kogi (1), Ogun (4), Ondo (1), Osun (1), Oyo (4), Plateau (2), Rivers (5), Sokoto (1), and Taraba (1).

The complete list of the failed microfinance banks can be found here.

LIST OF MICROFINANCE BANKS CLOSED BY THE CBN