The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country over their failure to meet key regulatory requirements, in a move aimed at strengthening the nation’s financial system.
The revocation, which took effect on Wednesday, was approved by CBN Governor Olayemi Cardoso under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
In a statement issued by the apex bank’s Acting Director of Corporate Communications, Hakama Sidi-Ali, the CBN said the affected institutions failed to satisfy conditions required to continue operating as licensed financial institutions.
According to the bank, reasons for the action include inadequate assets to meet liabilities, closure of operations without regulatory approval, prolonged inactivity, failure to commence business within 12 months of receiving licences, and inability to maintain the required minimum capital.
The CBN said the decision formed part of its ongoing efforts to safeguard the stability of Nigeria’s financial sector, protect depositors and ensure strict compliance with banking regulations.
The regulator reaffirmed its commitment to maintaining a safe, sound and resilient financial system through continuous supervisory and enforcement actions where necessary.
Among the affected institutions are Minji-Se Churchill Microfinance Bank in Rivers State, Crystabel Microfinance Bank in Bayelsa, Gold Microfinance Bank, Supreme Microfinance Bank, Creditville Microfinance Bank and Verdant Microfinance Bank in Lagos, as well as several others spread across Kano, Abuja, Kaduna, Kebbi, Ogun, Niger, Plateau, Delta, Anambra, Benue, Cross River, Ondo, Osun, Oyo, Abia and Akwa Ibom states.
The CBN urged financial institutions to continue complying with regulatory standards to promote public confidence and ensure the stability of the banking industry.
