James Emejo in Abuja
The Central Bank of Nigeria (CBN), Wednesday revoked the operating licences of 46 microfinance banks across the country, citing persistent regulatory violations and failure to meet the minimum conditions required to continue operating as licensed financial institutions.
The central bank said the revocation, which took effect from July 1, 2026, was approved by the apex bank Governor, Mr. Olayemi Cardoso, in line with the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The CBN in a statement issued by acting Director, Corporate Communications Department, Mrs. Sidi-Ali Hakama, stated that the affected institutions failed to satisfy key prudential and operational requirements, making regulatory intervention unavoidable.
The CBN said the decision followed one or more identified infractions, including insufficient assets to meet liabilities, closure of operations without regulatory approval, prolonged inactivity and cessation of financial intermediation, failure to commence business within 12 months of obtaining licences, as well as inability to maintain the statutory minimum capital unimpaired by losses.
The central bank stressed that the action formed part of its broader supervisory efforts to preserve the integrity and stability of the country’s financial system while protecting depositors from the risks associated with weak and non-compliant financial institutions.
The bank maintained that only institutions that meet prescribed regulatory standards would be allowed to operate within the country’s financial system, reiterating its commitment to enforcing compliance across the banking industry.
The apex bank further assured the public that it would continue to deploy appropriate supervisory and regulatory measures to strengthen confidence in the financial sector and sustain a safe, sound and resilient financial system.
