CBN Cancels Licences of 46 Microfinance Banks Effective July 1

The Central Bank of Nigeria (CBN) has announced the revocation of operating licences belonging to 46 Microfinance Banks (MfBs) for failing to meet regulatory standards.

The announcement was made in a statement released on Wednesday in Abuja by the Acting Director of Corporate Communications, Mrs Hakama Sidi-Ali.

She noted that the decision followed the approval of the CBN Governor, Mr Olayemi Cardoso, in line with the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

According to the apex bank, the affected institutions failed to fulfil conditions necessary for retaining their operational licences as regulated financial institutions.

“The revocation of the licenses is part of CBN’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 CBN remains committed to promoting a safe, sound and resilient financial system.

“It will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” Sidi-Ali stated.

The CBN explained that the affected banks were found wanting in several critical areas, including inadequate assets to cover liabilities, suspension of operations without regulatory approval, and inactivity in financial operations.

Additional factors responsible for the action include failure to commence business operations within one year of obtaining licences and inability to sustain the minimum capital requirements without losses affecting shareholders’ funds.

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