The Central Bank of Nigeria (CBN) has taken a sweeping regulatory action by revoking the operating licences of 46 microfinance banks across the country, sending shockwaves through Nigeria’s financial sector. The decision, which takes immediate effect, underscores the apex bank’s determination to tighten oversight and restore confidence in the banking industry.
According to the CBN, the affected institutions failed to comply with critical regulatory requirements necessary for licensed financial operations. The move was carried out under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The apex bank disclosed that the affected microfinance banks were found guilty of one or more serious infractions. These include failing to maintain sufficient assets to cover liabilities, shutting down operations without regulatory approval, remaining inactive for prolonged periods, failing to commence business within 12 months after obtaining licences, and operating below the minimum capital requirements prescribed by law.
Financial experts believe the decisive action is aimed at protecting depositors and preventing financially weak institutions from posing risks to Nigeria’s banking system. The CBN stressed that only institutions capable of meeting prudential standards would be allowed to operate in the country’s financial sector.
The development has triggered fresh concerns among customers of the affected banks, many of whom are expected to seek clarification on the status of their deposits and ongoing financial transactions. The regulator, however, reassured the public that the exercise forms part of broader efforts to strengthen the financial system rather than create uncertainty.
Industry observers say the latest crackdown sends a strong warning to other financial institutions that regulatory compliance is no longer optional. They expect more intensive supervision as the CBN continues efforts to build a safer, stronger and more resilient banking environment.
The apex bank reaffirmed its commitment to protecting depositors, enforcing banking regulations and maintaining public confidence in Nigeria’s financial system, while urging all licensed institutions to comply fully with existing laws and supervisory requirements.
Affected Microfinance Banks: The CBN has published the full list of the 46 affected institutions as part of its official revocation notice.
See the List:
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