Forty-six Microfinance Banks have lost their operating licenses, the Central Bank of Nigeria (CBN) announced on Wednesday in Abuja.
The apex financial sector regulatory authority said the revocation of the licenses of the affected banks takes effect from July 1, 2026.
The CBN said the revocation of the licenses were in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
A statement from the CBN signed by its Acting Director, Corporate Communications Department, Hakama Sidi-Ali, confirmed the CBN Governor, Olayemi Cardoso, sanctioned the revocation of the licenses.
Sidi-Ali said the withdrawal of the banks’ operating licenses followed their failure to meet the regulatory requirements for continued operation as licensed financial institutions.
“The revocation order became necessary because of one or more of the doll circumstances, including insufficient assets to meet liabilities; closure of operations without the CBN approval;
inactivity and cessation of financial intermediation; failure to commence operations within 12 months of licence approval, and failure to maintain minimum capital funds unimpaired by losses,” Sidi-Ali said.
She said the revocation of the licenses is part of the Bank’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 CBN, she assured, remains committed to promoting a safe, sound and resilient financial system and will continue to where necessary, to maintain public confidence in the Nigerian financial system.
