In a recent press release dated March 5th, the Central Bank of Nigeria (CBN) has sent a stern warning to all primary mortgage banks (PMBs) across the country regarding the importance of submitting regulatory returns in a timely manner.
The release, bearing reference number FPR/DIR/PUB/LET/001/022 and signed by Dr. Valentine Ururuka, the Director of Financial Policy and Regulation, expressed the CBN’s disappointment over the recurrent issue of late or non-submission of periodic returns, particularly those related to the Financial Institutions’ Annual reports.
The CBN clarified that any company licensed to conduct primary mortgage banking business in Nigeria falls under the category of Primary Mortgage Banks (PMBs).
Emphasizing the critical role of adherence to regulatory guidelines in maintaining financial stability and transparency within the banking sector, the apex bank reiterated the importance of PMBs complying with reporting requirements.
PMBs are integral to the real estate and housing finance industry, and their adherence to reporting standards is vital for effective oversight.
Referencing Section 24 of the Banks and Other Financial Institutions Act 2020, the CBN reminded PMBs of their obligation to submit monthly FinA returns no later than the 5th day following the end of each month.
To accommodate weekends or public holidays, PMBs are instructed to submit returns on the preceding workday when the deadline falls on such days.
The CBN’s warning was explicit: future breaches of regulatory reporting deadlines will result in sanctions, which could include fines, restrictions, or other disciplinary actions.
The CBN also outlined a procedure for PMBs encountering technical difficulties preventing timely submission. They must promptly notify the CBN via email, providing evidence of the technical issue to facilitate resolution.
The release concluded with a strong admonition for PMBs to take these guidelines seriously and ensure the timely submission of all regulatory returns, as failure to comply could have severe repercussions for both the banks and the broader financial system.
