The Central Bank of Nigeria (CBN) has revoked the operating licenses of forty-six Microfinance Banks with effect from 1 July 2026.
The Acting Director of the Corporate Communications Department of the central bank, Hakama Sidi-Ali, in a statement on Wednesday, said this is in accordance with the CBN powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
Reasons for revocation
Mrs Sidi-Ali said the revocation was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions.
She said according to the revocation order, the action became necessary because of the bank’s insufficient assets to meet liabilities, closure of operations without the CBN approval, inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, and failure to maintain minimum capital funds unimpaired by losses.
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She explained that the revocation of the licenses is part of the bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements.
“The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement said.
