The Central Bank of Nigeria says it revoked the operating licences of 46 microfinance banks across the country on account of persistent regulatory breaches and failure to meet requirements for continued operation.
In a press statement on Wednesday, Hakama Sidi Ali, Acting Director of Corporate Communications, the apex bank said the revocation took effect from July 1, 2026, in line with its statutory powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act.
The decision was approved by the Governor of the Central Bank, Olayemi Cardoso, following the affected institutions’ inability to satisfy the regulatory conditions required to remain licensed financial institutions, the bank said.
The bank explained the the action became necessary due to one or more major infractions committed by the affected microfinance banks.
These include insufficient assets to meet liabilities, closure of operations without prior approval from the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, as well as inability to maintain the minimum capital threshold without impairment from losses.
The apex bank added that the licence revocation forms part of its broader efforts to strengthen the stability of Nigeria’s financial system and ensure strict compliance with banking regulations.
It said that the move is aimed at protecting depositors, preserving public confidence, and ensuring that only financially sound and properly governed institutions remain in operation.