The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks, with the decision taking effect from Wednesday, July 1, 2026.
The apex bank announced the development in a statement signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali, stating that the action was taken in line with 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, Olayemi Cardoso, after the affected institutions failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.
The bank explained that the decision followed several regulatory breaches, including inadequate assets to meet liabilities, shutting down operations without the approval of the CBN, prolonged inactivity and the cessation of financial intermediation, failure to commence business within 12 months of receiving a licence, and failure to maintain the minimum capital requirement without impairment from accumulated losses.
The CBN said the measure forms part of its broader efforts to strengthen the stability of Nigeria’s financial system, protect depositors’ funds, and ensure that all licensed financial institutions comply with existing laws and prudential regulations.
Reaffirming its commitment to financial sector stability, the apex bank stated that it would continue to take appropriate supervisory and regulatory actions where necessary to promote a safe, sound and resilient banking system and sustain public confidence in Nigeria’s financial sector.
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