Aba Landlords Association Petitions Presidency Over Revocation Of The License Of 179 Micro Finance Banks By CBN

Suleiman Anyalewechi, Aba

The umbrella body of Aba landed property owners, Aba Landlords Protection and Development Association, ALPADA, has strongly appealed to president Bola Ahmed Tinubu to revisit the issue of the revocation of the operating licenses of no fewer than 179 Micro Finance Banks by the Central Bank Of Nigeria, CBN.

In a petition letter signed by the quartet of Chief Leo Ike Nnodu Okoye, Chief Leonard Onyemesiri, Comrade Benson Imo and Sir B.I Okoro dated July 26, 2023 and made available to NewsCritic online, ALPADA said the revocation order as contained in two separate federal government official gazettes numbers 93 and 94 in May 2023, have negatively impacted both on the lives of the promoters and staff of the affected banks, as well as the economy of the country.

ALPADA in the petition addressed to the presidency, lamented that the decision of the country’s apex bank in liquidating the affected banks has led to the loss of about 4000 and several thousands of direct and indirect jobs respectively.

This according to them is in addition to the untold hardships which rural dwellers who form the bulk of the primary beneficiaries, and clientele of the operations of the suspended microfinance institutions have been subjected to.

The petition also faulted most of the reasons adduced by the CBN for the revocation order, noting that while some of the microfinance institutions may have experienced some operational  difficulties, most of them nevertheless despite the prevailing challenging economic, social and political situations in the country in the last few years still strived to meet their primary responsibilities.

“About three years ago, these microfinance institutions were directed to raise their minimum share capital from N250,000 to N50million by the CBN. 

It is also a known fact by all that in the last three years the whole world not just Nigeria witnessed some challenges ranging from the Covid-19 pandemic, insecurity and global economic meltdown.

However, despite all the challenges the affected micro microfinance institutions still not only met the recapitalization policy, but most of their obligations.

Most of the reasons given by the CBN for the revocation, such as insolvency, failure to render returns, inactivity and failure to render most of their mandatory services for over six months are not factual.

Even in the face of the serious challenges posed by the currency redesign, the affected micro microfinance banks still remained viable and responsive to their primary responsibilities” APALDA stated. 

They blamed the travails of the affected financial institutions mainly on the corrupt and tainted disposition of the CBN leadership under the now suspended Godwin Emefiele, adding that reversing the revocation order will go a long way in fast tracking the economic recovery efforts of the present regime.

APALDA in further putting a lie on the CBN rationalization of the exercise noted that until the eve of gazetting the suspension order, all the affected banks were still operational.

The umbrella body of Aba landlords also stated that relevant authorities within the banking industry regulations in the country, notably the Nigerian Deposit Insurance Corporation, NDIC, have since blamed the suspension on some entrenched forces out to sabotaged efforts at improving the lots of the poor masses.

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