The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks across the country over their failure to comply with regulatory requirements.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, saying the revocation takes immediate effect.
According to the CBN, the action was taken pursuant to its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.
The bank said the affected institutions failed to satisfy the conditions required to continue operating as licensed financial institutions.
It explained that the decision followed the identification of several regulatory infractions, including insufficient assets to meet liabilities, closure of operations without the approval of the CBN, prolonged inactivity, cessation of financial intermediation, failure to commence business within 12 months of obtaining a licence, and failure to maintain the required minimum capital unimpaired by losses.
The apex bank said the measure forms part of its ongoing efforts to strengthen the financial system and protect depositors.
“The revocation of the licences 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 statement said.
It added that the CBN 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 Nigeria’s financial sector.
The list of the 46 affected microfinance banks was released alongside the announcement.
