The Central Bank of Nigeria has announced the revocation of licenses of 83 Microfinance Banks operating in the country.
Punch online reports that the closure of the affected institutions, according to the apex bank took effect from December 20, 2013.
In view of the closure, the Nigeria Deposit Insurance Corporation has been appointed the provisional liquidator for their wind down.
The corporation confirmed the development on Thursday.
Findings revealed that the NDIC has commenced the process of winding up of the affairs of the affected MFBs.
The corporation said a public announcement would soon be made to communicate the process of verification and payment of insured deposits in the affected MFBs.
Although the NDIC failed to state the reasons why the licences were revoke, investigations revealed that their inability to recapitalise was responsible for the closure.
The CBN had given MFBs till December 31 to recapitalize.
The CBN, which several months ago asked the MFBs to recapitalise, had categorised them under different amounts of capital base requirement.