CBN revokes licences Microfinance Banks — The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 financial institutions. The regulator cited persistent regulatory violations, inactivity, and failure to meet banking requirements.

The decision forms part of the CBN’s efforts to strengthen Nigeria’s financial system. It also aims to protect depositors and ensure that only financially sound institutions remain in operation.

The affected organisations include finance companies, primary mortgage banks, and microfinance banks. According to the CBN, many failed to meet regulatory standards despite receiving opportunities to address identified shortcomings.

The apex bank said some institutions stopped operations, while others failed to meet minimum capital requirements. Others violated key provisions of the Banks and Other Financial Institutions Act (BOFIA). Some also engaged in practices that threatened financial stability.

As a result, the CBN said revoking their licences became necessary to maintain confidence in Nigeria’s banking sector.

“The Central Bank remains committed to promoting a safe, sound and resilient financial system. Institutions that fail to comply with regulatory requirements will face appropriate sanctions in accordance with the law,” the apex bank said.

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Furthermore, the CBN explained that routine supervision uncovered prolonged inactivity and repeated non-compliance with prudential standards.

Why the CBN Took Action

The regulator cited several reasons for the licence revocations, including:

• Failure to meet minimum capital requirements.
• Persistent violations of banking regulations.
• Prolonged inactivity or closure of operations.
• Poor corporate governance.
• Failure to comply with BOFIA.

Meanwhile, industry experts believe the move sends a strong message that the CBN will no longer tolerate weak governance or prolonged non-compliance.

“The objective is not to punish operators but to protect depositors and preserve confidence in the financial system. Strong regulation benefits everyone in the long run,” financial analyst Adewale Johnson said.

What It Means for Customers

However, the CBN assured customers that the licence revocations do not automatically mean depositors will lose their money. Instead, legal and regulatory procedures will guide the winding down or liquidation process where necessary.

Customers were advised to monitor updates from the Nigeria Deposit Insurance Corporation (NDIC) regarding claims and reimbursement.

In addition, the CBN urged licensed financial institutions to maintain adequate capital, improve risk management, and comply with all regulatory requirements.

CBN Tightens Oversight

In recent years, the CBN has increased inspections, stress tests, and enforcement actions. These measures aim to improve transparency, accountability, and financial stability.

Consequently, stakeholders believe consistent enforcement will strengthen investor confidence and reduce risks across the banking sector.

The CBN also reaffirmed its commitment to monitoring licensed institutions. It said it will continue taking action against operators that fail to meet statutory obligations.

The full list of the 46 affected institutions has been published by the CBN. It includes the legal basis for each licence revocation.

Finally, experts advised Nigerians to verify the licensing status of financial institutions before opening accounts or investing. They also encouraged customers to rely on verified information from the CBN and the NDIC instead of social media rumours.

Editor’s Note: The complete list of the affected institutions is available in the comments section accompanying this report.

Keyphrase: CBN revokes licences Microfinance Banks.