LAGOS, July 2 – The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks across the country after they failed to meet regulatory requirements for continued operation.
The decision took effect on July 1, 2026, following approval by CBN Governor Olayemi Cardoso under the provisions of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to the CBN, the affected banks did not meet one or more of the conditions required to remain licensed. These include having insufficient assets to cover liabilities, shutting down operations without approval, remaining inactive, failing to begin operations within 12 months of receiving a licence, or not maintaining the required minimum capital.
The regulator said the move is part of its ongoing efforts to strengthen the financial system, protect depositors and ensure licensed institutions comply with banking regulations.
Alongside the licence withdrawals, the CBN also released fresh guidance on financial contracts involving troubled banks and other financial institutions. Under the new interpretation of BOFIA, the suspension of payment obligations, delivery commitments and contract termination rights can only last for a maximum of two business days.
The apex bank said the clarification is aimed at reducing uncertainty for banks, financial institutions and counterparties while making it easier to manage commercial risks when an institution is facing regulatory action.
This is the latest step in the CBN’s clean-up of Nigeria’s financial sector. In 2023, the regulator revoked the licences of 179 financial institutions, including 132 microfinance banks, over similar compliance and operational failures.
