Abuja, July 1, 2026 – The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MFBs) across the country for failing to meet regulatory requirements for continued operation.
The apex bank announced the revocation in a press statement issued on Wednesday, stating that the action took effect from July 1, 2026, in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to the CBN, the revocation was approved by its Governor, Mr. Olayemi Cardoso, following the affected banks’ inability to comply with the conditions required to remain licensed financial institutions.
The bank explained that the decision became necessary due to one or more regulatory infractions, including insufficient assets to meet liabilities, closure of operations without obtaining approval from the CBN, inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving licences, and failure to maintain the minimum capital requirements.
The affected institutions comprise Tier 1, Tier 2 and State Microfinance Banks located across several states, including Kano, Lagos, Abuja, Rivers, Ogun, Plateau, Kaduna, Niger, Kebbi and Benue.
The CBN said the revocation forms part of its ongoing efforts to safeguard the stability of Nigeria’s financial sector, protect depositors and ensure that licensed institutions comply with extant laws and regulatory requirements.
“The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions where necessary to maintain public confidence in the Nigerian financial system,” the statement read.
The statement was signed by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications.
Industry observers say the latest action underscores the CBN’s resolve to strengthen regulatory oversight and sanitise the country’s microfinance banking sector to ensure only financially sound institutions continue to operate.
