The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country over failure to comply with regulatory requirements.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, confirming that the revocation takes immediate effect.
According to the CBN, the action was taken in line with its statutory powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The bank explained that the affected institutions were found to have breached one or more regulatory conditions required for licensed financial institutions to continue operating in Nigeria.
Among the infractions identified by the apex bank were inadequate assets to meet liabilities, closure of operations without obtaining approval from the CBN, prolonged inactivity, failure to carry out financial intermediation, failure to commence operations within 12 months after receiving a licence, and failure to maintain the required minimum capital unimpaired by losses.
Explaining the decision, the CBN said the move 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 Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement read.
The CBN also indicated that the names of all affected microfinance banks have been published in the official revocation notice.
Full list of the affected 46 microfinance banks:
