CBN Revokes Operating Licences Of 46 Microfinance Banks Over Regulatory Breaches

CBN Revokes Operating Licences of 46 Microfinance Banks Over Regulatory Breaches The Central Bank of Nigeria has announced the revocation of operating licences of forty-six microfinance banks across the country, in a sweeping regulatory action aimed at strengthening compliance within the financial sector.

The decision was approved by the Governor of the Central Bank, Olayemi Cardoso, following the institutions’ failure to meet key regulatory and operational requirements necessary for continued licensing. According to the regulator, the affected banks were found not to have complied with standards relating to capital adequacy, corporate governance, and financial reporting obligations, which are mandatory for licensed financial institutions operating in Nigeria.

The CBN said the move is part of ongoing efforts to sanitise the financial system, protect depositors, and ensure the stability of the microfinance banking sector, which plays a key role in providing financial services to underserved communities. Officials added that the revocation is intended to restore confidence in the sector and ensure that only institutions meeting strict regulatory benchmarks are allowed to operate. The apex bank is expected to release a full list of the affected microfinance banks, along with guidance for customers on how to recover or transfer their funds where applicable. The development marks one of the most significant regulatory crackdowns in recent years on Nigeria’s microfinance banking industry, as authorities intensify oversight of financial institutions.