The Central Bank of Nigeria (CBN) has issued a warning to all primary mortgage banks (PMBs), development finance institutions (DFIs), and microfinance banks (MFBs) in the country regarding the late submission of regulatory returns. In letters dated March 5, 2024, the CBN expressed its strong disapproval of the ongoing issue of late submission of returns by banks on the financial analysis (FinA) system.
FinA is an offsite surveillance automation system that facilitates online submission of returns by financial institutions to the CBN. The CBN, citing Section 24 of the 2020 Banks and Other Financial Institutions Act, has mandated MFBs, PMBs, and DFIs to submit their returns before the fifth day after each month end, and has warned of sanctions for defaulters.
The CBN has expressed dismay over the late and non-rendition of periodic returns on FinA by MFBs, DFIs, and PMBs. Therefore, all MFBs, DFIs, and PMBs are reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act (BOFIA) 2020, and other extant regulations on the timely rendition of regulatory returns. Consequently, they must ensure that their monthly FinA returns are submitted on or before the fifth day after each month end. In cases where the fifth day falls on a weekend or public holiday, returns should be submitted the previous workday.
The CBN strongly advises timely rendition of all regulatory returns as future breaches will attract sanctions. On May 24, 2023, the CBN revoked the operating licenses of 132 MFBs, three finance companies, and four PMBs. The apex bank noted that the firms failed to fulfill or comply with the conditions subject to which their licenses were granted or failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provision of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.