CBN SHUTS DOWN 46 MICROFINANCE BANKS FOR FAILING REGULATORY REQUIREMENTS
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By ; Ganiyat Sunmola
The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks nationwide over violations of regulatory requirements.
The decision was announced on Wednesday in a statement issued by the CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali, who stated that the revocation takes immediate effect.
According to the apex bank, the action was taken pursuant to the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, following the affected institutions’ failure to satisfy conditions necessary for continued operation as licensed financial institutions.
The CBN explained that the affected microfinance banks were found to have committed various regulatory breaches, including inadequate assets to cover liabilities, shutting down operations without prior approval, extended periods of inactivity, cessation of financial intermediation services, failure to commence operations within 12 months of obtaining licences, and inability to maintain the prescribed minimum capital requirements.
The regulator said the move forms part of its broader efforts to strengthen the financial system, protect depositors and ensure strict compliance with banking regulations.
“The revocation of the licences is part of the bank’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 statement noted.
The apex bank reaffirmed its commitment to maintaining a safe, stable and resilient financial system, stressing that it would continue to take necessary supervisory and enforcement actions to uphold public confidence in Nigeria’s banking sector.
The CBN also released the full list of the 46 affected microfinance banks.
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