CBN Grants Licence to Another Company To Provide Financial Services to Nigerians
- CBN has granted Preferred Finance Company Limited a license to drive financial inclusion in Nigeria
- The company will look to deliver structured financial solutions, particularly to micro, small, and medium-scale enterprises (MSMEs)
- The latest approval has further increased the pool of financial companies in Nigeria to support economic growth through digital financial services
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has officially granted a finance company licence to Preferred Finance Company Limited to deliver financial solutions, particularly to micro, small, and medium-scale enterprises (MSMEs) in Nigeria.
Source: UGC
The announcement was made during the company’s grand opening ceremony in Abuja held on Tuesday, March 29.
At the ceremony, the company's executives and board members unveiled their vision to broaden financial access and drive inclusive growth, especially among underserved businesses.
Olasehinde Sunday, Managing Director and CEO of Preferred Finance, while speaking at the event shared the vision of the company, Punch reports.
He said:
“This is not just the launch of another finance company it is the continuation of our journey rooted in clear vision, dedication, and determination."
. He revealed that the company received its final licence from the CBN on December 16, 2024, a date that coincided with his birthday.
Sunday noted:
"Preferred Finance Company Limited was founded by the visionary leadership of Guarantee Multipurpose Cooperative Society Limited, with our cooperators subscribing to the 70 per cent ownership of the company. On December 16, 2024 , coincidentally also my birthday, we received our final licence from the Central Bank of Nigeria to operate as a finance company.”
“Our journey began with a simple yet ambitious goal, to expand our innovative financial services beyond the cooperatives to a regulated financial institution that will cater for the diverse needs of members and businesses."
Source: Getty Images
He further revealed that with the licence, the company can now offer services that include fund management, financial advisory, structured finance, and a broad suite of loan products such as personal, education, contract, LPO, payday, and MSME loans.
“Our goal is to expand innovative financial services beyond cooperatives to a regulated platform that meets the diverse needs of Nigerian businesses."
Also speaking, Board Chairman Kolawole Okunato described the licensing as the culmination of a decade-long journey, tracing the company’s roots to the founding of the Guarantee Multipurpose Cooperative Society in 2012.
Okunato said:
“Through resilience, compliance, and corporate governance, we achieved what many only dream of a Finance Company Licence from the CBN. This new chapter allows us to reach more businesses, more households, and more dreams.”
Top US bank seeks licence to operate in Nigeria
Ealier, Legit.ng reported that a top US investment banker and America’s largest bank, JP Morgan, is seeking a banking licence to operate in Nigeria.
The bank seeks to convert its Lagos representative office into full banking operations, offering dollar-denominated loans.
The move comes as the bank hailed the replacement of NNPC boss Mele Kyari by President Bola Tinubu and the CBN's release of the net FX external reserves.
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Source: Legit.ng
