The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MfBs) as part of efforts to strengthen regulatory compliance and safeguard the stability of the country’s financial system.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, stating that the revocation took effect from July 1, 2026.
According to the CBN, the action was taken pursuant to the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, following the affected institutions’ failure to satisfy the regulatory conditions required for continued operation.
Sidi-Ali said the decision received the approval of the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, after supervisory assessments revealed persistent non-compliance by the affected banks.
She explained that the exercise forms part of the regulator’s broader commitment to maintaining a safe, resilient and well-regulated banking sector capable of protecting depositors’ funds and sustaining public confidence.
“The revocation of the licences is part of the CBN’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,” she said.
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The CBN assured the public that it would continue to deploy appropriate supervisory and enforcement measures whenever necessary to uphold the integrity of Nigeria’s financial system.
Details contained in the revocation order indicated that the affected microfinance banks lost their licences over a range of regulatory breaches, including inadequate assets to meet liabilities, failure to maintain the minimum capital requirement, and ceasing operations without obtaining regulatory approval.
Other infractions cited by the apex bank include failure to commence business within 12 months of receiving operating licences, prolonged inactivity, and the cessation of financial intermediation services.
The latest action underscores the CBN’s ongoing drive to sanitise the financial sector by ensuring that only institutions that meet prudential standards and regulatory obligations remain licensed to operate in the country.