By Bilesanmi Abayomi
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks, with the decision taking effect from July 1, 2026.
The action was approved by the Governor of the CBN, Mr. Olayemi Cardoso, under the powers conferred by Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to a statement issued by the apex bank, the affected institutions failed to comply with key regulatory requirements governing the operation of microfinance banks in Nigeria.
The CBN said the licences were revoked for one or more of several reasons, including financial instability, operational irregularities and prolonged inactivity.
The bank explained that some of the institutions no longer possessed sufficient assets to meet their liabilities or maintain the minimum capital requirements prescribed by law.
Others were found to have ceased operations without obtaining the approval of the CBN or failed to commence business within 12 months after receiving their operating licences, contrary to regulatory provisions.
The apex bank also cited prolonged inactivity and the cessation of financial intermediation as grounds for the regulatory action.
Commenting on the development, the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali, said the decision forms part of the bank’s ongoing efforts to strengthen the stability of Nigeria’s financial system and safeguard depositors’ interests.
She stated that the CBN remains committed to promoting a safe, sound and resilient financial system through effective supervision and timely regulatory intervention where necessary.
According to the statement, the apex bank will continue to take appropriate supervisory actions to maintain public confidence in Nigeria’s financial sector and ensure that licensed financial institutions operate in line with established regulatory standards.
