The Central Bank of Nigeria (CBN) has revoked the licence of Garu Microfinance Bank in Bauchi State.
The apex bank revoked the microfinance bank’s licence less than a month after it revoked the licence of a Deposit Money Bank, Skye Bank on September 21. The assets and liabilities of Skye Bank have since been taken over by a new licencee, Polaris Bank.
The News Agency of Nigeria (NAN) quoted a manager of the Garu Microfinance Bank, Ibrahim Abubakar, as confirming the development, adding that the Nigeria Deposit Insurance Corporation (NDIC) had taken over the running of the financial institution.
According to him, the microfinance bank’s licence was revoked over liquidity problems and because of the failure of its shareholders to recapitalise it.
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Abubakar disclosed that Garu Microfinance Bank had been in operation for more than 20 years and everyone had already got used to it.
He lamented the timing of the revocation, saying that the bank was presently paying September salaries and pensioners.
“All the same, the NDIC and the management are collecting forms from depositors to process their payment with designated banks across the state, to enable them receive their money,” Abubakar said.
A senior staff member of NDIC, who refused to be named, confirmed the development.
He said, “The CBN has revoked the licence of Garu Micro Finance Bank Bauchi, for its inability to meet up with the financial obligations guiding operations of micro finance banks.”