The Central Bank of Nigeria (CBN) has officially withdrawn the operating permits for 46 microfinance banks effective July 1. This announcement was made by Mrs. Hakama Sidi-Ali, the Acting Director of Corporate Communications, in an official statement released in Abuja on Wednesday.
Acting under the authority granted by sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA) of 2020, CBN Governor Olayemi Cardoso approved the measure. The move targets institutions that failed to uphold the regulatory standards necessary to maintain their standing as licensed financial entities.
The CBN noted that this initiative is vital to preserving financial sector stability and protecting depositors. Officials stated that the regulator remains focused on maintaining a resilient banking environment and will continue to perform oversight functions to ensure public trust in the system. Reasons for the revocations included insufficient assets to cover liabilities, unauthorized closure of business, prolonged inactivity, failure to launch within the mandated 12-month period, and inadequate capital reserves.
