BREAKING: 46 Microfinance Banks lose licences as CBN tightens regulation

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, effective July 1, 2026, over their failure to comply with regulatory requirements.

The apex bank announced the decision in a statement on Wednesday, explaining that the action was taken in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) after the affected institutions repeatedly failed to meet statutory obligations.

According to the CBN, investigations revealed that the banks committed several regulatory infractions, including maintaining insufficient assets to meet their liabilities, ceasing operations without obtaining regulatory approval, remaining inactive for extended periods, and failing to commence business within the timeframe stipulated under their licences.

The regulator also disclosed that some of the affected institutions failed to meet the minimum capital requirements required to continue operating as licensed microfinance banks.

The CBN said the revocation forms part of its ongoing efforts to strengthen Nigeria’s financial system, improve regulatory compliance, and promote stability within the banking sector.

“The action is aimed at safeguarding the financial system, protecting depositors, and strengthening public confidence in the banking industry,” the apex bank stated.

The CBN reaffirmed its commitment to enforcing strict compliance with banking regulations, warning that it will continue to take decisive action against financial institutions that fail to meet the required standards.

The regulator added that the exercise is intended to sanitise the financial sector and ensure that only sound and well-capitalised institutions remain in operation.