CBN Revokes Licences of 46 Microfinance Banks Over Regulatory Violations
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MfBs), effective July 1, 2026, over their failure to meet regulatory requirements for continued operations.
The apex bank announced the decision in a statement issued on Wednesday in Abuja by its Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali.
According to the statement, the revocation was carried out in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, following the approval of the Governor of the CBN, Mr. Olayemi Cardoso.
Sidi-Ali said the affected institutions failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.
She explained that the action forms part of the CBN’s ongoing efforts to strengthen financial system stability, safeguard depositors’ funds, and ensure strict compliance with existing banking laws and regulatory standards.
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“The revocation of the licences is part of the CBN’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,” she said.
She reaffirmed the apex bank’s commitment to maintaining a safe, sound and resilient financial system, stressing that it would continue to take appropriate supervisory and regulatory actions to sustain public confidence in Nigeria’s banking sector.
According to the revocation order, the licences were withdrawn due to several regulatory infractions, including insufficient assets to meet liabilities, cessation of operations without the approval of the CBN, and prolonged inactivity in financial intermediation.
Other reasons cited include failure to commence operations within 12 months of obtaining a banking licence and failure to maintain the minimum capital requirement unimpaired by accumulated losses.
The latest action underscores the CBN’s resolve to enforce regulatory compliance and ensure that only financially sound institutions remain in operation within Nigeria’s microfinance banking sector.
By PRNigeria
