CBN revokes Bauchi-based microfinance bank’s licence

The Central Bank of Nigeria (CBN) has revoked the operation licence of Garu Microfinance Bank.

The Bauchi-based microfinance bank was closed Monday.

A senior officer of the Nigerian Deposit Insurance Corporation (NDIC) told journalists on condition of anonymity that the CBN revoked Garu Microfinance Bank over its inability to meet up with the financial obligations guiding operations of micro finance banks.

He said that the NDIC had taken over the operations of the bank in order to safeguard customers’ deposits and keep its records intact.

“It is unable to meet its credit obligations; it notifies customers and the public that it has assumed the responsibilities of receiver.

“We closed the doors to the public and immediately starts working with the bank’s staff to bring the books of account up to date and ultimately to post all relevant entries to the bank’s general ledger,” he said.

The manager of the bank, Ibrahim Abubakar confirmed that it was closed due to liquidation problem.

“The bank was closed because the shareholders of the bank have been unable to recapitalise it,” he said.

He, however, lamented that the liquidation came at a wrong time as the bank was paying pensioners and September salaries.

“But the NDIC and the management are collecting forms from depositors to process their payment with designated banks across the enable them received their money,” he said

He said the bank had been operating for over 20 years in the state capital and had pensioners and other depositors as customers.