By Opeyemi Adelakun
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks with immediate effect over their failure to comply with regulatory requirements.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali.
According to the CBN, the revocation was approved by its Governor, Olayemi Cardoso, in line with the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The bank explained that the affected institutions were sanctioned for failing to satisfy conditions required for continued operation as licensed financial institutions.
Among the reasons cited for the action were insufficient assets to meet liabilities, closure of operations without the approval of the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving licences, and inability to maintain the prescribed minimum capital requirements.
The CBN said the move forms part of its ongoing supervisory efforts to strengthen the financial system, safeguard depositors’ funds and ensure strict compliance with banking regulations.
The apex bank reaffirmed its commitment to maintaining a safe, resilient and sound financial system, adding that it would continue to take appropriate regulatory actions against institutions that fail to comply with existing laws and prudential standards.
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