CBN revokes licenses of 46 microfinance banks

The Central Bank of Nigeria has revoked the operating licenses of 46 microfinance banks across the country, effective July 1, 2026. The action, approved by CBN Governor Olayemi Cardoso, was taken under the regulator's powers granted by the Banks and Other Financial Institutions Act of 2020.

According to the central bank, the affected institutions failed to meet the regulatory requirements for continued operation. The cited violations include having insufficient assets to meet liabilities, closing operations without regulatory approval, ceasing financial intermediation, failing to commence operations within 12 months of receiving a license, and failing to maintain minimum capital funds unimpaired by losses. The CBN stated the move is part of its ongoing efforts to safeguard financial stability, protect depositors, and ensure licensed institutions comply with laws and prudential regulations.

The revoked licenses span a mix of Tier 1, Tier 2, and state microfinance banks located in more than a dozen states. Kano State had the highest number of affected institutions with 13, followed by Lagos with 8. Other states with multiple banks on the list include Abia, the Federal Capital...