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The Central Bank of Nigeria on Wednesday revoked the operating licences of 46 microfinance banks across the country, citing persistent regulatory breaches and failure to meet requirements for continued operation.
In a press statement signed by Hakama Sidi Ali, Acting Director of Corporate Communications, which was obtained from the apex Bank’s official X handle on Wednesday, the apex bank said the revocation took effect from July 1, 2026, in line with its statutory powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act.
According to the CBN, the decision was approved by the Governor of the Central Bank, Olayemi Cardoso, following the affected institutions’ inability to satisfy the regulatory conditions required to remain licensed financial institutions.
The bank said the action became necessary due to one or more major infractions committed by the affected microfinance banks.
These 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 licence approval, as well as inability to maintain the minimum capital threshold without impairment from losses.
The apex bank said the licence revocation forms part of its broader efforts to strengthen the stability of Nigeria’s financial system and ensure strict compliance with banking regulations.
It added that the move is aimed at protecting depositors, preserving public confidence, and ensuring that only financially sound and properly governed institutions remain in operation.
The CBN reaffirmed its commitment to promoting a safe, resilient, and sound financial system, stressing that it would continue to deploy supervisory and regulatory measures where necessary to safeguard the integrity of the sector.
