CBN Revokes Licenses of 46 Microfinance Banks Effective 2026

The Central Bank of Nigeria (CBN) announced the revocation of licenses for 46 microfinance banks, effective July 1, 2026. This decision, communicated by Sidi Ali Hakama, Director of Corporate Communications, stems from the banks' inability to meet regulatory requirements necessary for continued operation.

CBN Governor Olayemi Cardoso stated that the action aligns with sections 12 and 13 of the Banks and Financial Institutions Act (BOFIA) 2020. Reasons for the license withdrawals include insufficient assets to meet liabilities, closure of operations without regulatory approval, prolonged inactivity, failure to commence operations within 12 months of license approval, and not maintaining minimum capital requirements as mandated by law.

The revocation is part of CBN's ongoing efforts to ensure the stability of the financial sector, protect depositors, and ensure compliance with current laws and regulatory requirements. The central bank remains committed to promoting a safe, sound, and resilient financial system and will continue to take necessary supervisory and regulatory actions to maintain public confidence in Nigeria's financial system.