Acorn & Mustad Legal

 Guide to Ensuring Regulatory Compliance for Microfinance Banks in Nigeria Introduction In May 2023 ,  the Central Bank of Nigeria (CBN) revoked the operating licences of some Microfinance Banks, Finance Companies and Primary Mortgage Banks, citing inactivity, insolvency, failure to render returns, closed shop, and non-compliance with regulation. Why does this concern you? As a founder, VC, or investor in digital banks or the general banking industry, it is essential to keep your investment secure and safe from regulatory penalties that could have been easily avoided. Banking is a heavily regulated industry and penalties for non-compliance can cost investors time, money, and sometimes your entire investment. Why does the CBN revoke Microfinance Bank Licences? Regulatory compliance is imperative for fintech companies and microfinance banks operating in Nigeria to retain their license. The CBN is empowered to revoke licenses of financial institutions that fail to adhere to its guidelines