The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs) across the country over their failure to comply with regulatory requirements necessary for continued operations.
The apex bank announced the decision in a statement issued yesterday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, stating that the revocation took effect from July 1, 2026.
According to the CBN, the action was taken pursuant to Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, which empower the regulator to withdraw the licences of financial institutions that fail to meet stipulated prudential, operational and governance standards.
The bank explained that the affected microfinance institutions did not fulfil conditions required to retain their operating licences, although it did not immediately disclose the specific infractions committed by each of the institutions.
The move forms part of the CBN’s broader efforts to strengthen the stability, integrity and resilience of Nigeria’s financial system by ensuring that only sound and properly regulated institutions continue to operate within the banking sector.
Microfinance banks play a critical role in providing financial services to low-income earners, small businesses, artisans and rural communities that are often underserved by conventional commercial banks. However, industry experts have repeatedly stressed the need for strict regulatory oversight to safeguard depositors’ funds and maintain public confidence in the sub-sector.
The CBN urged customers of the affected banks to seek appropriate guidance regarding their deposits and other financial interests, while assuring the public of its commitment to protecting the financial system and promoting a safe, stable and inclusive banking environment.
