CBN Revokes Licenses of 46 Microfinance Banks in Nigeria

The Central Bank of Nigeria (CBN) announced the revocation of licenses for 46 microfinance banks across the country due to their failure to comply with key regulatory requirements. This decision, effective immediately, was communicated in a statement issued on Wednesday by the Director of Corporate Communications, Hakama Sidi Ali.

The CBN's action is based on its powers under sections 12 and 13 of the Bank and Financial Institutions Act (BOFIA) 2020, following the discovery of serious regulatory infractions affecting these institutions. The CBN identified several violations, including inadequate assets to meet liabilities, prolonged inactivity, cessation of financial intermediation without regulatory approval, failure to commence business within 12 months of obtaining a license, and inability to maintain statutory minimum capital.

The CBN emphasized that this revocation is part of its ongoing efforts to strengthen confidence in the banking sector and ensure that financial institutions operate soundly and in compliance with current laws and regulations.