Central Bank of Nigeria Threatens Sanctions against Erring MFIs

Worried by the increasing wave of insider abuses and falsification of documents by directors of microfinance banks (MFBs) and primary mortgage institutions (PMIs), the Central Bank of Nigeria (CBN) has threatened to sanction directors of these institutions with severe disciplinary action and prosecution.

The apex bank, at a meeting with the operators, expressed displeasure over exposure of MFB chairmen, non-executive directors, chief executives, top management staff and external auditors to high levels of insider-related credits, which in most cases are far beyond limits stipulated by the law governing their operations. CBN regretted that chairmen, directors, managing directors and staff of PMIs are issuing false/forged statements of accounts on behalf of their customers to facilitate visa applications.

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