The Central Bank of Nigeria (CBN) has officially cancelled the operating permits of 46 microfinance institutions nationwide due to their inability to adhere to mandatory regulatory standards. This directive, issued on Wednesday by Acting Director of Corporate Communications Hakama Sidi-Ali, is effective immediately.
This enforcement action draws upon the authority granted to the central bank under Sections 12 and 13 of the 2020 Banks and Other Financial Institutions Act (BOFIA). The regulator specified that these institutions were no longer eligible to function as licensed financial entities.
Specific grounds for the revocation included persistent inactivity, unauthorized operational closures, a lack of sufficient assets to cover liabilities, failure to launch business operations within a year of licensure, and an inability to preserve the mandatory minimum capital levels. The CBN emphasized that this measure is vital for maintaining the integrity of the financial sector, shielding customer deposits, and ensuring strict adherence to national banking laws. The institution reaffirmed its dedication to oversight and regulatory firmness to uphold trust in Nigeria’s financial infrastructure.
