The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MfBs) over regulatory failures, including weak asset positions and non-compliance with licensing requirements.
The revocation took immediate effect and was carried out in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
Following the action, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the official liquidator of the affected institutions under Section 12(2) of BOFIA 2020 and Sections 55(1) and 55(2) of the NDIC Act 2023.
In a statement, the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, said the affected banks failed to meet key regulatory requirements necessary for continued operation.
According to the apex bank, some of the institutions had insufficient assets to meet their liabilities, while others shut down operations without obtaining the required approval from the CBN. Several also failed to maintain the minimum capital requirement unimpaired by losses.
The CBN further disclosed that some of the revoked banks had become inactive, ceased financial intermediation activities, or failed to commence operations within 12 months after receiving their operating licences.
“The revocation was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” the statement said.
The CBN noted that the action is part of its ongoing efforts to strengthen the stability, soundness and integrity of Nigeria’s financial system by ensuring that licensed financial institutions comply with prudential and operational standards.
