The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country as part of its ongoing efforts to strengthen financial sector stability and enforce regulatory compliance.
The apex bank announced that the revocation takes effect from July 1, 2026, following the approval of the Governor of the CBN, Mr. Olayemi Cardoso.
According to a statement issued on Wednesday by the Acting Director of the Corporate Communications Department, Mrs. Hakama Sidi-Ali, the action was taken in line with the powers conferred on the CBN under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The CBN said the affected institutions failed to meet the regulatory requirements necessary for continued operation as licensed financial institutions.
It explained that the revocation became necessary because of one or more regulatory infractions identified during supervisory activities.
According to the apex bank, some of the affected microfinance banks had insufficient assets to meet their liabilities, while others had ceased operations without obtaining the required approval from the CBN.
The regulator also cited prolonged inactivity and the cessation of financial intermediation by some institutions as reasons for the action.
In addition, some of the affected banks failed to commence operations within 12 months after receiving their operating licences, contrary to regulatory requirements.
Others were found to have failed to maintain the minimum capital funds required for licensed financial institutions, with their capital impaired by accumulated losses.
The CBN said the revocation forms part of its broader strategy to safeguard the stability of Nigeria’s financial system, protect depositors’ funds and ensure that all licensed financial institutions operate in compliance with existing laws and prudential guidelines.
“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 statement said.
The apex bank reiterated its commitment to maintaining a safe, sound and resilient financial system through effective supervision and timely regulatory intervention.
It added that it would continue to take appropriate supervisory and enforcement actions against institutions that fail to meet prescribed standards in order to sustain public confidence in Nigeria’s financial system.
The latest action underscores the CBN’s intensified regulatory oversight under Governor Cardoso’s administration, which has focused on strengthening governance, improving compliance and restoring confidence across Nigeria’s banking sector.
(The Whistler)