The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks nationwide over their failure to comply with regulatory standards.
The decision, which takes immediate effect, was announced in a statement issued on Wednesday by the Acting Director of Corporate Communications, Hakama Sidi-Ali.
According to the apex bank, the action was taken pursuant to the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, following the discovery of several regulatory violations by the affected institutions.
The CBN said investigations revealed that the banks no longer met the conditions required to retain their operating licences. Among the infractions identified were inadequate assets to meet liabilities, unauthorized closure of business operations, prolonged inactivity and discontinuation of financial intermediation services, failure to commence operations within 12 months of obtaining licences, and inability to maintain the statutory minimum capital requirement without impairment from losses.
The apex bank said the regulatory action forms part of its broader efforts to strengthen the financial system and ensure strict compliance with existing banking regulations.
“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 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,” the statement said.
