CBN Withdraws Licences of 46 Microfinance Banks Over Regulatory Breaches

CBN Withdraws Licences of 46 Microfinance Banks Over Regulatory Breaches 

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country with immediate effect, citing their failure to comply with key regulatory requirements.

The decision was announced in a statement issued on Wednesday by the Acting Director of Corporate Communications, Hakama Sidi-Ali, who said the action was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso.

According to the apex bank, the licences were withdrawn in line with the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The CBN explained that the affected institutions failed to satisfy conditions required to continue operating as licensed financial institutions.

Among the reasons given for the revocation were inadequate assets to meet financial obligations, shutting down operations without regulatory approval, prolonged inactivity, failure to commence business within 12 months after obtaining licences, and inability to maintain the required minimum capital.

The bank said the move forms part of its ongoing efforts to strengthen the stability of Nigeria’s financial system, safeguard depositors’ funds and ensure that all licensed financial institutions comply with existing laws and regulatory standards.

It added that it would continue to take appropriate supervisory and enforcement actions whenever necessary to preserve public confidence in the country’s banking sector.

The affected microfinance banks are spread across several states, including Lagos, Kano, Abia, Rivers, Ogun, Kebbi, Plateau, Kaduna, Delta, Bayelsa, Benue, Cross River, Ondo, Osun, Oyo, Niger, Anambra, Akwa Ibom, the Federal Capital Territory and others.

Among the banks whose licences were withdrawn are Merchant Microfinance Bank, Gold Microfinance Bank, Creditville Microfinance Bank, Entrepreneur Microfinance Bank, Supreme Microfinance Bank, Crystabel Microfinance Bank, Winview Microfinance Bank, Frontline Microfinance Bank, Creekline Microfinance Bank, Safegate Microfinance Bank and Avantus Microfinance Bank, alongside 35 other institutions.