Victor Ezeja
In its quest to ensure transparency in the operations, the Central Bank of Nigeria (CBN) has warned other financial institutions about their repeated failure to submit statutory monthly returns using the FinA program on time or at all. These institutions include all Microfinance Banks (MFBs), Development Financing Institutions (DFIs), and Primary Mortgage Banks (PMBs).
The CBN expressed dismay about the ongoing delays in submitting regulatory returns in a letter dated March 5, 2024, written to all MFBs.
Join our WhatsApp ChannelIn the letter signed by Valentino Ururuka, on behalf of the director of the financial policy and regulation department, the apex bank reminded MFBs of their duty to follow regulatory standards, stressing the significance of timely filing of financial data and citing Section 24 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
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The letter said MFBs must make sure that their monthly FinA returns are filed by the 5th day after the end of each month, as per the order. When a weekend or public holiday occurs on the deadline, MFBs are supposed to turn in their returns the previous workday.
It emphasized the gravity of the situation and warned that going forward, violation of the regulatory requirements will attract penalties.
MFBs were required to notify the CBN via email at OFlreturns@cbn.gov.ng prior to the deadline, along with documentation of the technical difficulty, and were asked to take immediate steps to fix any technical issues that would impede timely submission.
As stated in the letter, serious penalties could be imposed for noncompliance with the directive, which emphasizes how important it is for MFBs to submit regulatory returns on time in order to minimize any potential consequences.
Similarly, the CBN voiced its displeasure with Development Finance Institutions (DFIs) and Primary Mortgage Banks (PMBs) for consistently submitting periodic returns using the Financial Institutions Returns Automation (FinA) application after the deadline.
The Banks and Other Financial Institutions Act (BOFIA) 2020’s Section 24 and other current rules requiring the timely submission of regulatory returns were violated, according to the CBN.
The requirement for DFIs and PMBs to submit their monthly FinA returns by the 5th day after the end of each month was also emphasized by the CBN. It said returns must be filed on the working day before if the fifth day falls on a weekend or public holiday.
It urged the institutions to ensure compliance with these regulatory requirements, as failure to do so may result in sanctions in the future.
Additionally, DFIs encountering technical difficulties are instructed to promptly notify the CBN via email at returns@cbn.gov.ng before the deadline, providing evidence of the technical issues encountered.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
