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CBN, NDIC on N5million Lawsuit for MFB License Revocation

CBN, NDIC on N5million Lawsuit for MFB License Revocation
CBN, NDIC on N5million Lawsuit for MFB License Revocation

BFL Microfinance Bank has pummeled a sum of N5 million claim on the Central Bank of Nigeria (CBN), and the Nigerian Deposit Insurance Corporation (NDIC). The bank sued the regulatory bodies for revoking its working permit which makes them ask for a general damage of N2 million and a corrective harms of N3 million.

The NDIC, in a notice posted on the bank’s entryway titled: Revocation of Banking License, dated September 30, express that the bank was announced indebted and shut by the CBN and the NDIC delegated as the vendor.

In a starting summons documented at the Federal High Court by its advice, Velma Solicitors, the microfinance bank, asked that the court proclaims the indicated decision invalid and void as the bank was not announced as incapable to meeting liquidity obligation.

BFL made their position known that they were not in default of any of the provisions of the Banks and Other Financial Institutions Act 2004 to warrant a revocation of its license.

The direction to BFL likewise supplicated that the court ought to decide if, by the aggregate perusing of Sections 12, 35, 36, 39 and 62 of the Banks and Other Financial Institutions Act 2004, the CBN had the privilege to renounce their permit without notice to the bank.

Mrs. Ajayi Olu, BFL’s Managing Director in an affirmation, swore that the bank was not proclaimed insolvent and neither had it been notified by CBN or anyone at all of any indebtedness.

In a discharged made accessible to people in general, the apex bank had made known its stand to deny the working licenses of 182 monetary organizations working in the nation.

This is coming barely two weeks after CBN announced the revocation of Skye Bank’s operating license and from the look of thing in the microfinance industry, this is just the beginning of some major step to revamp the institution by the regulatory authorities

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