The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing their failure to comply with regulatory requirements for continued operation.
The apex bank announced that the revocation takes effect immediately from July 1, 2026, following the approval of the CBN Governor, Olayemi Cardoso, in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020. Olayemi Cardoso
According to the CBN, the affected institutions failed to meet the regulatory standards required to remain licensed financial institutions. The regulator said the action forms part of its ongoing efforts to strengthen the stability, integrity and soundness of Nigeria's financial system while ensuring strict compliance with prudential guidelines.
The move is expected to protect depositors, enhance confidence in the microfinance banking sector and reinforce regulatory discipline across the industry. Customers of the affected banks are expected to receive further guidance through the Nigeria Deposit Insurance Corporation (NDIC), which typically oversees the liquidation process and the settlement of insured deposits where applicable.
The CBN also released the full list of the affected microfinance banks, which spans institutions across several states of the federation, underscoring the nationwide scope of the regulatory action.
Industry analysts say the latest enforcement measure signals the regulator's determination to ensure that only financially sound and well-governed institutions remain in operation, a move expected to improve public confidence in Nigeria's financial services sector despite the short-term disruption for customers of the affected banks.
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