BREAKING: CBN revokes licences of 46 Microfinance Banks in major regulatory crackdown

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MFBs) over their failure to meet regulatory requirements, in a move aimed at strengthening the stability and integrity of the country’s financial system.

The apex bank announced on Wednesday that the revocation took effect immediately, July 1, 2026, in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

In a statement signed by the Acting Director of the Corporate Communications Department, Mrs. Hakama Sidi-Ali, the CBN said the decision was approved by its Governor, Olayemi Cardoso, following the affected institutions’ inability to satisfy the conditions required for continued operation as licensed financial institutions.

According to the apex bank, the licences were withdrawn after the affected microfinance banks were found to have committed one or more regulatory infractions.

These include insufficient assets to meet liabilities, closure of operations without obtaining the approval of the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months after receiving licences, and failure to maintain the statutory minimum capital required for licensed institutions.

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The CBN explained that the action forms part of its ongoing supervisory efforts to ensure that only financially sound and compliant institutions operate within Nigeria’s banking sector.

“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 apex bank reaffirmed its commitment to promoting a safe, sound and resilient financial system, stressing that it would continue to take appropriate regulatory and supervisory measures whenever necessary to maintain public confidence in Nigeria’s financial sector.

The latest action underscores the CBN’s intensified regulatory oversight under Governor Cardoso’s leadership as the bank seeks to strengthen corporate governance, enforce prudential standards and enhance the resilience of the country’s financial institutions.