CBN withdraws licenses of 46 Microfinance banks

The Central Bank of Nigeria (CBN) Wednesday withdrew operational licenses of 46 Microfinance banks as part of moves to sanitise the financial system.

The revocation of licenses of the affected banks cut across the entire country with the decision taking effect from 1st July, 2026.

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The development was contained in a statement issued by the acting Director of Corporate Communications of the Central Bank of Nigeria,
Hakama Sidi-Ali, on Wednesday in Abuja.

The statement maintained that the withdrawal of licenses was in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

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The bankers bank added the affected Microfinance banks failed to meet the required conditions to continue their operation of financial services, hence, the approval for the licence withdrawal was given by the CBN Governor, Olayemi Cardoso.

According to the CBN, the affected banks were found to have breached one or more of the rules guiding their operations.

Some of the reasons listed by the regulator include having assets that were not enough to cover their liabilities, shutting down operations without obtaining approval from the CBN, remaining inactive and no longer carrying out banking activities, failing to begin operations within one year after receiving their licences, and not maintaining the minimum capital required for their business.

The Central Bank said the decision forms part of its efforts to keep Nigeria’s financial sector stable and ensure that licensed financial institutions follow the laws and regulations governing their operations.

See affected banks below:

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