CBN revokes licences of 46 microfinance banks
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, effective from July 1, 2026.
The apex bank announced that the decision followed the failure of the affected institutions to meet the regulatory requirements. These are necessary to continue operating as licensed financial institutions.
According to the CBN, the action forms part of its ongoing commitment to strengthen the Nigerian financial system and protect depositors.
“The revocation is aimed at safeguarding the stability of the financial sector and ensuring compliance with regulatory standards,” the bank stated.
Why the Licences Were Withdrawn
The CBN explained that the affected banks violated one or more key regulatory requirements.
These include insufficient assets to meet liabilities, operating without adequate capital, inactivity in financial intermediation. Another reason is their failure to commence business within 12 months of receiving approval.
The regulator also cited instances where some institutions allegedly shut down operations without obtaining prior approval from the CBN.
These shortcomings, the bank noted, undermined confidence in the financial system and required immediate intervention.
CBN move aims to protect depositors
The apex bank stressed that the exercise is not merely punitive but necessary to preserve the integrity of Nigeria’s banking sector.
By removing institutions that no longer meet minimum operational standards, the CBN believes it can enhance public confidence in licensed financial institutions.
“We remain committed to promoting a safe, sound and resilient financial system,” the statement added.
The regulator also reaffirmed its readiness to take supervisory and enforcement actions whenever necessary to ensure strict compliance with banking regulations.
Affected microfinance banks spread across several states
The 46 affected microfinance banks are spread across several states, including Lagos, Kano, Abia, Kaduna, Ogun, Niger, Plateau, Benue, Bayelsa. Other states are Delta, Cross River, Osun, Kebbi, Ondo, Anambra, Abuja, Uyo and Rivers.
The CBN advised members of the public to deal only with duly licensed financial institutions. It also assured depositors that it would continue strengthening oversight of the banking sector.
The latest development reflects the regulator’s determination to ensure that only financially sound and compliant institutions remain in operation.
