CBN Revokes Licenses of 46 Microfinance Banks in Nigeria

The Central Bank of Nigeria (CBN) announced the revocation of operating licenses for 46 microfinance banks across the country, citing persistent regulatory violations and failure to meet minimum conditions required for continued operation. This decision, effective July 1, 2026, was approved by CBN Governor Mr. Olayemi Cardoso in accordance with provisions of sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The CBN's Director of Corporate Communications, Mr. Sidi Ali Hakama, stated that the affected institutions failed to satisfy key prudential operational requirements, making regulatory intervention unavoidable. Identified infractions included insufficient assets to meet liabilities, closure of operations without regulatory approval, prolonged inactivity, and failure to commence business within 12 months of obtaining a license.

The CBN emphasized that this action is part of a broader supervisory effort to preserve the integrity and stability of Nigeria's financial system and to protect depositors from risks associated with weak, non-compliant financial institutions.