The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks across the country, with the decision taking effect from July 1, 2026.

The development was announced in a statement issued on Wednesday by the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali.

According to the statement, the revocation was carried out under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, which empowers the apex bank to withdraw the licences of financial institutions that fail to comply with regulatory standards.

Ali stated that the action received the approval of the Governor of the Central Bank of Nigeria, Olayemi Cardoso.

She explained that the affected microfinance banks lost their licences after failing to satisfy the conditions required to continue operating as licensed financial institutions.

The CBN said the decision was based on one or more regulatory breaches identified during its supervisory assessments. These include inadequate assets to cover liabilities, shutting down operations without obtaining the approval of the apex bank, prolonged inactivity and failure to carry out financial intermediation, failure to commence operations within 12 months of obtaining a licence, and the inability to maintain the required minimum capital without being eroded by losses.

According to the statement, the revocation forms part of the Central Bank’s broader efforts to strengthen the stability of Nigeria’s financial system, safeguard depositors’ funds and ensure that licensed financial institutions operate in line with existing laws and regulatory requirements.

The apex bank reaffirmed its commitment to maintaining a secure, resilient and well-regulated financial sector, stressing that it would continue to enforce supervisory measures and take necessary regulatory actions against institutions that fail to meet the standards required to sustain public confidence in the country’s banking system.