Full Breakdown: CBN Cancels Licences Of 46 Microfinance Banks

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

The apex bank explained that the action was taken under the authority granted by Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

It further stated that the approval for the licence withdrawal was given by the CBN Governor, Olayemi Cardoso, following the failure of the affected institutions to meet the regulatory conditions required to continue operating as licensed financial entities.

According to the regulator, the affected microfinance banks were found to have violated one or more operational requirements. These include maintaining insufficient assets to cover liabilities, operating without regulatory approval, remaining inactive or non-operational, failing to commence business within one year of obtaining a licence, and not meeting the minimum capital adequacy requirements.

The CBN noted that the move is part of ongoing efforts to strengthen financial system stability, enforce compliance, and ensure that all licensed institutions adhere strictly to established banking laws and regulations.

The list of affected institutions has been released by the apex bank.