The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, with effect from July 1, 2026.
The apex bank said the decision was taken after the affected institutions failed to comply with key regulatory requirements stipulated under the Banks and Other Financial Institutions Act (BOFIA).
According to the CBN, investigations revealed that the affected banks were unable to meet critical operational and financial standards. Some reportedly had insufficient assets to cover liabilities, while others ceased operations without regulatory approval, remained inactive for extended periods, failed to commence business within the prescribed timeframe, or could not maintain the minimum capital requirements.
The CBN explained that the action forms part of ongoing efforts to strengthen the banking sector, safeguard depositors’ funds, and maintain public confidence in Nigeria’s financial system.
The regulator added that the measure is aimed at promoting financial stability and ensuring that only sound and compliant institutions operate within the country’s banking industry.
