CBN Revokes 46 Microfinance Bank Licences for Failing Regulatory Standards
The CBN said the licences were withdrawn due to one or more regulatory breaches.
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks, citing their failure to comply with regulatory requirements for licensed financial institutions. The revocation took effect on July 1, 2026, in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to a press statement issued by the apex bank, the decision was approved by CBN Governor Olayemi Cardoso following supervisory assessments that found the affected institutions no longer met the conditions required to continue operating as licensed microfinance banks.
The CBN said the licences were withdrawn due to one or more regulatory breaches. These include insufficient assets to meet liabilities, closure of operations without prior approval from the central bank, inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving a licence, and failure to maintain the minimum capital requirements free from impairment by losses.
The regulator said the action forms part of its ongoing efforts to strengthen the stability of Nigeria’s financial sector, protect depositors and ensure that licensed financial institutions operate in full compliance with existing laws and prudential regulations.
The CBN reaffirmed its commitment to maintaining a safe, sound and resilient financial system, adding that it will continue to take appropriate supervisory and regulatory measures where necessary to preserve public confidence in Nigeria’s banking sector.
The statement was signed by Hakama Sidi Ali, Acting Director of Corporate Communications at the Central Bank of Nigeria, and dated July 1, 2026.
