NAMFB Decries Closure of MfBs in Kwara

  • NAMFB Decries Closure of MfBs in Kwara

The National Association of Microfinance Banks, Kwara State chapter, on Wednesday decried the recent closure of three microfinance banks in the state by officials of the Federal Inland Revenue Service.

The Chairman of the association, Chief Joseph Adeyemi, at a media briefing in Ilorin, alleged that the agency had sealed Heritage Microfinance Bank Limited, Oro-Ago in Ifelodun Local Government Area of the state; Ours Microfinance Bank Limited in Ofa, Offa LGA; and Osi Microfinance Bank for some days.

He claimed that the affected banks were not given notice of closure before the action was taken.

He said even though the affected banks had been unsealed, their closure had negatively affected the drive to boost financial inclusion, especially in semi-urban and rural areas in the country.

He added that their closure had led to huge financial losses and confidence crisis in the affected Mfbs.

According to him, other MfBs in the state are currently apprehensive of possible closures without any notice by the agency.

Adeyemi, therefore, called on the FIRS to stop further closures of the Mfbs in the state without due process.

But the Head, Communications and Servicom, FIRS, Mr. Wahab Gbadamosi, said the MfBs had defaulted in fulfilling their tax obligations.

He said, “As a rule in FIRS, enforcement is the last resort after all entreaties, communications and correspondences with a taxpayer have failed.

“For example, some of the affected microfinance banks in Kwara State owe tax debts. We do not like closing business premises. It is always the last resort. We followed the law, in this instance, and in all our enforcement exercises.”

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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