CBN revokes licences of 46 microfinance banks over failure to meet regulatory requirements

THE Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks, citing their failure to meet the regulatory requirements for continued operation.

The apex bank disclosed this in a statement on Tuesday, saying the revocation took effect from July 1, 2026, in line with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The statement signed by the Acting Director of Corporate Communications at the CBN, Ms Hakama Sidi-Ali, said the decision was approved by CBN Governor, Olayemi Cardoso, following the affected institutions’ inability to satisfy the conditions required to remain licensed financial institutions.

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The bank said the action was necessitated by regulatory breaches, including insufficient assets to meet liabilities, closure of operations without the approval of the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of obtaining licences, and failure to maintain the minimum capital required for operation.

The CBN said the licence revocation forms part of its ongoing efforts to strengthen the stability of Nigeria’s financial system, protect depositors and ensure that licensed financial institutions comply with extant laws and prudential regulations.

It reaffirmed commitment to maintaining a safe, sound and resilient financial system, adding that it would continue to take appropriate supervisory and regulatory actions where necessary to sustain public confidence in the nation’s banking sector.