The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country over regulatory violations, marking one of its most significant banking sector clean-up exercises this year.
The revocation took effect on July 1, 2026, in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, following approval by CBN Governor, Olayemi Cardoso.
According to the apex bank, the affected institutions failed to comply with key regulatory requirements and were found to have committed one or more serious infractions.
The reasons for the licence withdrawal include insufficient assets to meet liabilities, closure of operations without CBN approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of obtaining licences, and inability to maintain the minimum capital requirements.
The CBN said the action forms part of its ongoing efforts to strengthen Nigeria’s financial system, protect depositors, and ensure that all licensed financial institutions comply with existing laws and regulatory guidelines.
The bank reaffirmed its commitment to maintaining a safe, sound and resilient banking sector.
The affected microfinance banks are spread across several states, including Lagos, Kano, Rivers, Abia, Kwara, Niger, Bayelsa, Kebbi, Ogun, the Federal Capital Territory, Plateau, Delta, Oyo, Cross River, Akwa Ibom, Anambra, Kaduna, Benue, Ondo and Osun.
The CBN advised depositors and other stakeholders of the affected banks to contact the Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation (NDIC) for guidance on claims and the liquidation process.
