By Oluwakemi Kindness
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks for failing to meet regulatory requirements, in a move aimed at strengthening the stability of Nigeria’s financial system.
According to a statement on Wednesday by Hakama Sidi-Ali, Acting Director, CBN’s Corporate Communications Department, the revocation takes effect from July 1, 2026.
According to the CBN, Governor Olayemi Cardoso approved the action under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, after the affected institutions failed to satisfy conditions required to continue operating as licensed financial institutions.
The bank said the decision followed findings that the affected microfinance banks were unable to comply with key prudential and operational standards.
According to the CBN, the affected institutions were sanctioned for one or more of the following reasons:
* 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 receiving their licences; and
* failure to maintain the minimum capital required by regulation.
The apex bank said the licence revocations form part of its ongoing supervisory measures to safeguard depositors, strengthen financial sector stability and ensure compliance with existing banking laws and regulations.
“The revocation of the licences is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements,” the CBN said.
It reaffirmed its commitment to promoting a safe, sound and resilient financial system, adding that it would continue to take appropriate regulatory and supervisory actions where necessary to sustain public confidence in Nigeria’s banking sector.
