The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 microfinance banks across the country over their failure to comply with regulatory requirements.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, stating that the revocation takes effect from July 1, 2026.
According to the CBN, the action was taken under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, following the approval of CBN Governor Olayemi Cardoso.
The bank explained that the affected institutions failed to meet the minimum standards required to continue operating as licensed financial institutions.
It listed the reasons for the revocation to include 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 their licences, and failure to maintain the required minimum capital base.
The CBN said the move forms part of its ongoing efforts to strengthen the stability of Nigeria’s financial system, protect depositors, and ensure that all licensed financial institutions operate in compliance with existing laws and regulatory standard.
The apex bank reaffirmed its commitment to maintaining a safe, sound, and resilient financial system, adding that it will continue to take appropriate supervisory and regulatory actions whenever necessary to preserve public confidence in Nigeria’s banking sector.
