The Central Bank of Nigeria (CBN)  has advised all primary mortgage banks in the country regarding the timely submission of regulatory returns.

This was as it also issued a strict warning to Development Finance Institutions and  other Microfinance Banks.

The CBN expressed dismay over the late and non- rendition of periodic returns related to the Financial Institutions’ Annual reports, this was revealed In a press release issued on its website dated March 5 with reference number FPR/DIR/PUB/LET/001/022, and signed by its Director, Financial Policy and Regulation, Dr. Valentine Ururuka

According to CBN, “Primary Mortgage Bank shall be construed as any company that is licensed to carry out primary mortgage banking business in Nigeria.”

The apex bank stressed that adherence to regulatory guidelines is crucial for maintaining fiscal stability and transparency within the banking sector.

The apex bank emphasised that the strict adherence to regulatory guidelines is crucial for maintaining financial stability and transparency within the banking system.

PMBs play a great role in the real estate and housing finance industry, and their compliance with reporting requirements is essential for effective oversight.

The CBN reminded all PMBs of the provisions outlined in Section 24 of the Banks and Other Financial Institutions Act 2020.

The timely rendition of regulatory returns, particularly the FinA reports, is the subject of this section.

On or before the fifth day following the end of the month, PMBs must file their monthly FinA returns.

By adhering to this deadline, the CBN is certain to have precise and current data regarding these banks’ financial standing.

PMBs are required to put in their results by the prior weekday if the fifth day occurs on a weekend or public holiday. The goal of this flexibility is to make up for any inconveniences brought on by holidays.

The CBN issued a strong warning that future breaches of regulatory reporting deadlines will be met with appropriate sanctions.

The statement read, “The Central Bank of Nigeria has observed with dismay the late and non-rendition of periodic returns- on FinA by Primary Mortgage Banks.

“All PMBs are therefore reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act 2020, and other extant regulations on timely rendition of regulatory returns.

“Consequently, all PMBs are to ensure that their monthly FinA returns are submitted on or before the 5th day after the month’s end. Where the 5th day falls on a weekend or public holiday, returns shall be submitted the previous work day.

“You are strongly advised to ensure timely rendition of all regulatory returns as future breaches shall be sanctioned.”

The statement went on noting that PMBs encountering technical issues preventing timely submission must promptly notify the CBN via email.

The message should include evidence of the technical issue to facilitate resolution.

It said, “In case of technical issues, you are required to notify the CBN via email to OFIreturnscbn.qov.nq prior to the deadline, detailing with evidence the technical issue.

Meanwhile, the Development Finance Institutions’ lateness and failure to submit periodic returns on their financial activities have caused the Apex Bank to express serious worries..

The statement partly read, “The Central Bank of Nigeria has observed with dismay the late and non-rendition of periodic returns on FinA by Development Finance Institutions.

“All DFIs are therefore reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act 2020, and other extant regulations on timely rendition of regulatory returns.

“Consequently, all DFIs are to ensure that their monthly FinA returns are submitted on or before the 5th day after the month’s end. Where the 5th day falls on a weekend or public holiday, returns shall be submitted the previous work day.

“You are strongly advised to ensure timely rendition of all regulatory returns as future breaches shall be sanctioned.

Also, Microfinance Banks were also faulted regarding the timely submission of regulatory returns.

The financial regulatory body said, “All MFBs are therefore reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act 2020, and other extant regulations on timely rendition of regulatory returns.

“Consequently, all MFBs are to ensure that their monthly FinA returns are submitted on or before the 5th day after the month’s end. Where the 5th day falls on a weekend or public holiday, returns shall be submitted the previous work day.

“You are strongly advised to ensure timely rendition of all regulatory returns as future breaches shall be sanctioned. In case of technical issues, you are required to notify the CBN via email to OFIreturnscbn.qov.nq prior to the deadline, detailing with evidence the technical issue.”