The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 Microfinance Banks across the country over their failure to comply with regulatory requirements.
The Apex Bank announced the development in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, stating that the revocation takes immediate effect.
According to the CBN, the action was taken in line with the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, which empower the regulator to withdraw the licences of financial institutions that fail to meet prescribed standards.
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The Bank explained that the affected microfinance banks were found to have committed one or more serious regulatory violations that made them unfit to continue operating.
Among the reasons cited for the revocation were inadequate assets to meet liabilities, shutting down operations without the approval of the CBN, prolonged inactivity, cessation of financial services, failure to commence business within 12 months after obtaining a licence, and inability to maintain the minimum capital required by law.
The CBN said the decision forms part of its broader efforts to strengthen the financial system and ensure that only sound and compliant institutions remain in operation.
“The revocation of the licences 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 statement read.
The Apex Bank added that it remains committed to promoting a safe, stable and resilient banking system, stressing that it will continue to take appropriate supervisory and enforcement actions against institutions that fail to meet regulatory standards.
The latest move is expected to reinforce regulatory discipline within Nigeria’s Microfinance banking sector while protecting customers and boosting public confidence in the country’s financial system.