BREAKING: The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks across the country after finding multiple regulatory breaches during its oversight process.
ABUJA, FCT — The Central Bank of Nigeria, CBN, has withdrawn the operating licences of 46 microfinance banks with effect from July 1, 2026. The apex bank announced the decision in a statement signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali, saying the action followed regulatory violations by the affected financial institutions.
According to the CBN, Governor Olayemi Cardoso approved the licence revocations under Sections 12 and 13 of the Banks and Other Financial Institutions Act, BOFIA, 2020. The regulator said the affected banks failed to meet one or more conditions required to continue operating as licensed financial institutions. The reasons include inadequate capital, insufficient assets to meet liabilities, prolonged inactivity, failure to commence operations within the required period and closure of operations without regulatory approval.
The CBN said the decision forms part of its efforts to strengthen confidence in Nigeria’s financial system and protect depositors. “The revocation of the licences 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 statement said. The regulator also published the full list of the affected microfinance banks.
Microfinance banks play an important role in providing financial services to small businesses, low-income earners and rural communities across Nigeria. The CBN regularly reviews the performance of licensed financial institutions and has previously withdrawn licences from banks that failed to comply with regulatory standards or maintain minimum operating requirements.
The development means customers, investors and other stakeholders should confirm whether their financial institution appears on the CBN’s list of affected banks. The Nigeria Deposit Insurance Corporation, NDIC, is expected to oversee the next regulatory steps where necessary, while customers of the affected institutions are advised to follow official updates from the CBN and relevant authorities regarding their deposits and other banking services.
