The Central Bank of Nigeria has revoked the operating licences of 46 Microfinance Banks (MFBs) for failing to meet regulatory requirements for continued operation.
The development was announced in a statement issued by the CBN’s Acting Director of Communications, Mrs. Hakama Sidi-Ali, who said the revocation takes immediate effect.
According to the statement, the action was taken in line with the powers granted to the apex bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
Mrs. Sidi-Ali stated that the decision was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, following the affected banks’ failure to satisfy the conditions required to continue operating as licensed financial institutions.
According to her, “The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions.”
The CBN explained that the licences were revoked for one or more regulatory violations, including insufficient assets to meet liabilities, closure of operations without the approval of the apex bank, and prolonged inactivity resulting in the cessation of financial intermediation.
Other reasons cited include failure to commence operations within 12 months after obtaining a licence and failure to maintain the minimum capital requirements without impairment by accumulated losses.
The apex bank noted that the action forms part of its broader efforts to strengthen the stability of Nigeria’s financial system, protect depositors, and ensure that all licensed financial institutions comply with existing laws and regulatory standards.
The CBN reaffirmed its commitment to enforcing regulatory compliance across the banking sector as part of measures aimed at maintaining a sound, resilient, and trustworthy financial system.
