ALPADA petitions President Tinubu over revocation of operating licenses of micro Finance Banks by CBN


Titus Maduako Eleweke

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 qautet of Chief Leo Ike Nnodu Okoye, Chief Leonard Onyemesiri, Comrade Benson Imo and Sir B.I Okoro made available to our reporter, ALPA DA 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 situation has seriously affected the rural dwellers who rely on these microfinance banks for their economic activities especially in those areas that the commercial banks can not cover.. Most of their savings are equally trapped in these microfinance banks. Most of the microfinance banks in the country are off shoots of the Community banks which are easily accessible to the rural dwellers. It is in the light of the hardships being experienced by the poor rural dwellers and the general negative effects of the revocation order that we are appealing for its suspension" APALDA stated.

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 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, insecurities, and global economic meltdown" it stated.

However , the group said 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

The group 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, noting that reversing the revocation order would go a long way in fast tracking the economic recovery efforts of the present regime.