The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MFBs) across the country, citing persistent...
.jpeg)
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MFBs) across the country, citing persistent failure to comply with regulatory requirements for licensed financial institutions.
The revocation, which takes effect from July 1, 2026, was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
In a statement issued on Wednesday by the Acting Director of the CBN's Corporate Communications Department, Mrs. Hakama Sidi-Ali, the apex bank said the affected institutions had failed to meet the conditions required for continued operation.
According to the CBN, the decision followed findings that some of the banks had insufficient assets to meet their liabilities, while others had shut down operations without regulatory approval, ceased financial intermediation, failed to commence business within 12 months of receiving their licences, or were unable to maintain the minimum capital requirements.
The affected institutions are spread across several states, including Kano, Lagos, Kaduna, Niger, Ogun, Kebbi, Plateau, Rivers, Benue, Ondo, Osun, Abia, Cross River, Delta, Bayelsa, Anambra, Oyo, the Federal Capital Territory (Abuja), Kwara and Uyo. Kano recorded the highest number of affected microfinance banks.
Among the revoked institutions are Bompai MFB, Minjibir MFB, Shanono MFB, TOFA MFB, Kanopoly MFB, Creditville MFB, Safegate MFB, Zafec MFB, BASAWA MFB, OURPASS MFB, Entrepreneur MFB and Avantus MFB, among others.
The CBN said the action forms part of its ongoing efforts to strengthen the Nigerian financial system by ensuring that licensed financial institutions comply with extant laws and prudential 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 statement said.
The apex bank reaffirmed its commitment to maintaining a safe, sound and resilient financial system, adding that it would continue to take appropriate supervisory and regulatory measures to sustain public confidence in Nigeria's banking sector.
No comments