The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MfBs), with the decision taking effect from July 1.
The announcement was made in a statement issued on Wednesday in Abuja by the Acting Director of the CBN’s Corporate Communications Department.
According to the apex bank, the action was taken in line with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020. The revocation was approved by the Governor of the CBN, Mr. Olayemi Cardoso, after the affected banks failed to meet the regulatory requirements necessary to continue operating as licensed financial institutions.
The CBN said the move forms part of its ongoing efforts to strengthen the stability of Nigeria’s financial system, safeguard depositors’ funds, and ensure strict compliance with banking laws and regulatory standards.
“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,” the statement read.
“The CBN 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.”
According to the revocation order, the licences were withdrawn for several reasons, including insufficient assets to meet liabilities, the closure of operations without the approval of the CBN, and prolonged inactivity or cessation of financial intermediation.
Other violations cited by the apex bank include failure to commence operations within 12 months of obtaining a licence and failure to maintain the minimum capital requirements required for licensed microfinance banks.
