The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 microfinance banks, effective July 1, as part of efforts to strengthen oversight in the financial sector.
In a statement issued on Wednesday in Abuja, the apex bank said the decision was approved by its Governor, Olayemi Cardoso, following the institutions’ failure to meet regulatory requirements.
According to the CBN, the action aligns with its powers under the Banks and Other Financial Institutions Act (BOFIA) 2020 and is aimed at safeguarding the stability of the financial system and protecting depositors.
The affected banks were found to have violated key operational standards, including maintaining insufficient assets to meet liabilities, remaining inactive, shutting down operations without approval, or failing to commence business within the required timeframe. Some also did not meet the minimum capital requirements.
The CBN reaffirmed its commitment to ensuring a safe, sound, and resilient financial system, noting that it will continue to take necessary regulatory actions to uphold public confidence.
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