In September 2018, the Central Bank of Nigeria, CBN, gave a notification to revoke the operating licences of 182 other financial institutions out of which, six primary mortgage banks were included.
The apex bank said some of the microfinance banks were either indebted, distressed or voluntarily liquidated. It also explained that the revision became inevitable as the sector had been contending with challenges such as inadequate capital base, weak corporate governance, and ineffective risk management practices, among others.
Among the list of 34 firms across the country, CBN said 17 of the Primary Mortgage Banks are in Lagos; eight in Abuja; two in Akwa Ibom; while Oyo, Delta, Ogun, Kebbi, Jigawa, Abia and Osun have one each.
Primary Mortgage Banks are financial institutions that give loans to housing and real estate builders.