The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks as part of measures aimed at strengthening regulatory compliance and preserving stability in the country's financial system.
The apex bank announced the revocation in a statement on Wednesday, stating that the action took effect from July 1, 2026.
According to the CBN, the decision was approved by its Governor, Olayemi Cardoso, in exercise of the powers vested in the bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The regulator explained that the affected institutions failed to satisfy the statutory conditions required to continue operating as licensed microfinance banks.
It noted that the licences were revoked following various regulatory violations, including failure to maintain the minimum capital requirement, inability to meet financial obligations, and prolonged operational inactivity.
The CBN said some of the affected banks had ceased carrying out financial intermediation, while others shut down operations without obtaining the approval of the apex bank.
It added that some institutions also failed to commence business within 12 months after receiving their operating licences, contrary to regulatory provisions.
According to the bank, the enforcement action is part of ongoing efforts to ensure that only sound and compliant financial institutions remain in operation.
"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 read.
The CBN reiterated its commitment to maintaining a safe, resilient and well-regulated financial system capable of sustaining public confidence.
It stressed that it would continue to deploy appropriate supervisory and enforcement measures against institutions that fail to comply with prudential guidelines and other regulatory standards.
"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," it added.
The latest revocation is part of the apex bank's broader efforts to tighten oversight of banks and other financial institutions, with emphasis on sound corporate governance, effective risk management, regulatory compliance and the overall stability of the financial sector.
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