The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country over their failure to meet regulatory requirements for continued operation.
The apex bank announced the decision in a press statement issued on Wednesday, 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.
According to the CBN, the action was approved by its Governor, Mr. Olayemi Cardoso, following the affected banks’ inability to comply with the regulatory conditions required of licensed financial institutions.
The bank explained that the licences were withdrawn due to one or more regulatory breaches, including insufficient assets to meet liabilities, closure of operations without prior approval from the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving a licence, and failure to maintain the minimum capital required for continued operations.
The CBN stated that the measure forms part of its ongoing efforts to safeguard the stability of Nigeria’s financial system, protect depositors, and ensure that all licensed institutions operate in compliance with extant laws and regulatory standards.
The apex bank reaffirmed its commitment to promoting a safe, sound, and resilient financial system, adding that it would continue to take appropriate supervisory and regulatory actions where necessary to maintain public confidence in the nation’s banking sector.
The statement was signed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.
