The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks with effect from July 1, 2026, citing their failure to meet regulatory requirements for continued operation.
The apex bank announced the decision in a press statement issued on Wednesday, stating that the action was taken 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 revocation was approved by its Governor, Mr. Olayemi Cardoso, following the affected banks’ failure to comply with regulatory standards required of licensed financial institutions.
The bank explained that the affected institutions were found to have fallen short in one or more key regulatory requirements, including insufficient assets to meet liabilities, closure of operations without CBN approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving their licences, and failure to maintain the minimum capital required for operation.
The CBN said the revocation forms part of its ongoing efforts to safeguard the stability of Nigeria’s financial system, protect depositors, and ensure strict compliance with banking regulations.
It reaffirmed its commitment to promoting a safe, sound and resilient financial sector, adding that it would continue to take appropriate supervisory and regulatory actions where necessary to sustain public confidence in the country’s financial system.
