Nigeria: CBN Issues Stern Warning on Timely Regulatory Returns to Mortgage Banks, Development Finance Institutions, and Microfinance Banks

The Central Bank of Nigeria (CBN) has issued a firm warning to primary mortgage banks (PMBs), development finance institutions (DFIs), and microfinance banks (MFBs) regarding the imperative of submitting timely regulatory returns. In a press release dated March 5, the CBN expressed dissatisfaction with the delayed and non-submission of periodic returns related to the Financial Institutions’ Annual reports.

In the press release signed by Dr. Valentine Ururuka, the Director of Financial Policy and Regulation at the CBN, it was emphasized that adherence to regulatory guidelines is vital for upholding financial stability and transparency within the banking sector. The CBN pointed out that PMBs, DFIs, and MFBs play critical roles in their respective sectors and that their compliance with reporting requirements is essential for effective oversight.

Specifically, PMBs were reminded of the provisions outlined in Section 24 of the Banks and Other Financial Institutions Act 2020. The CBN highlighted the significance of submitting monthly Financial Activities (FinA) returns on or before the 5th day after the month-end. In cases where the 5th day falls on a weekend or public holiday, PMBs were instructed to submit their returns on the previous workday.

The CBN issued a strong warning that any future breaches of regulatory reporting deadlines would be met with appropriate sanctions, which may include fines, restrictions, or other disciplinary measures. The central bank urged PMBs encountering technical issues that could hinder timely submission to promptly notify the CBN via email, providing evidence of the technical issue for resolution.

Similar warnings and reminders were issued to DFIs and MFBs regarding the tardiness and non-submission of periodic returns on Financial Activities. The CBN reiterated the need for compliance with Section 24 of the Banks and Other Financial Institutions Act 2020 and other extant regulations. It emphasized that timely rendition of all regulatory returns is mandatory, and future breaches will be sanctioned accordingly.

All three categories—PMBs, DFIs, and MFBs—were advised to take these guidelines seriously, and any failure to comply may have severe consequences for the respective institutions and the overall financial system. The CBN also provided instructions for notifying the regulatory body in case of technical issues preventing timely submission, underlining the importance of evidence for swift resolution.

The CBN’s stringent stance underscores its commitment to ensuring discipline, adherence to regulations, and the integrity of the financial institutions operating within Nigeria.