The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MfBs), with the decision taking effect from July 1.
The development was announced in a statement issued on Wednesday in Abuja by the Acting Director of the CBN’s Corporate Communications Department, Mrs. Hakama Sidi-Ali.
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According to Sidi-Ali, the action was taken in line with the powers vested in the apex bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
She explained that the revocation received the approval of the CBN Governor, Mr. Olayemi Cardoso, after the affected institutions failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.
“The withdrawal of these licences forms part of the CBN’s ongoing commitment to preserving the stability of the financial system, protecting depositors and ensuring that all licensed financial institutions comply with applicable laws and regulatory standards.
“The Bank remains dedicated to maintaining a safe, stable and resilient financial sector and will continue to take appropriate supervisory and enforcement measures whenever necessary to sustain public confidence in Nigeria’s banking system,” she said.
According to the revocation order, the affected microfinance banks were sanctioned for several regulatory infractions, including inadequate assets to meet liabilities, shutting down operations without the approval of the CBN, and remaining inactive or ceasing financial intermediation.
Other reasons cited include failure to commence business within 12 months after receiving operating licences, as well as the inability to maintain the minimum capital requirements without impairment from accumulated losses.
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