The Central Bank of Nigeria (CBN) has officially cancelled the operational licences for 46 microfinance banks. According to Hakama Sidi-Ali, the acting director of communications, this decision is effective immediately.
The move aligns with the authority granted to the regulator under the Banks and Other Financial Institutions Act (BOFIA) of 2020. Governor Olayemi Cardoso approved the measure after determining these institutions failed to adhere to mandatory regulatory standards for continued operation.
Reasons cited for this regulatory action include a lack of assets to cover existing liabilities, shutting down operations without receiving proper clearance, and prolonged inactivity. Additionally, some banks failed to launch within the required 12-month window or did not maintain the necessary minimum capital levels after accounting for losses.
The CBN noted that this initiative is intended to bolster financial sector stability, shield the interests of depositors, and enforce strict institutional compliance with national banking laws.
