The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks with effect from July 1, 2026.

In a statement on Wednesday, the CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, said the revocation was in accordance with the apex bank’s powers under the Banks and Other Financial Institutions Act (BOFIA), 2020.

“The Central Bank of Nigeria (CBN) has revoked the operating licenses of forty-six (46) Microfinance Banks with effect from July 1, 2026, in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020,” she said.

Ms Ali said the revocation was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso.

She explained that the action followed the affected banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions.

According to the revocation order, the action became necessary because of one or more of the following: insufficient assets to meet liabilities; closure of operations without the approval of the CBN; inactivity and cessation of financial intermediation; failure to commence operations within 12 months of licence approval; and failure to maintain minimum capital funds unimpaired by losses.

“The revocation of the licenses 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 memo read. 

She added that the apex bank remains committed to promoting a safe, sound and resilient financial system and would continue to take appropriate supervisory and regulatory actions where necessary to maintain public confidence in the Nigerian financial system.