The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks, citing multiple regulatory violations and financial weaknesses that threatened the stability of the country's financial system.

The decision took effect on 1 July 2026 under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and forms part of the CBN's ongoing efforts to strengthen oversight of Nigeria's financial sector.

Why the licences were revoked

According to the CBN, the affected institutions failed to meet one or more key regulatory requirements. These included maintaining sufficient assets to meet liabilities, remaining operational without regulatory approval, carrying out financial intermediation activities, commencing operations within the required timeframe after licensing, and maintaining the minimum capital required to operate.

The apex bank said previous supervisory interventions and compliance windows failed to produce the necessary improvements, leaving licence revocation as the final regulatory action.

NDIC takes over liquidation process

The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the official liquidator for the affected banks.

The agency will take control of the institutions' assets, recover outstanding loans, verify depositor records and begin reimbursing eligible customers up to the insured deposit limit.

The NDIC also advised customers of the affected banks to prepare valid identification, account details and supporting documentation to facilitate the claims process.

Push for a stronger financial sector

The CBN said the action reinforces its commitment to maintaining a safe, stable and resilient financial system while ensuring that licensed financial institutions comply with existing regulations.

Industry observers say the move sends a strong signal that regulatory compliance will remain a priority as the CBN continues to strengthen supervision across Nigeria's microfinance banking sector.