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•NDIC commences liquidation of affected MFBs
From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks with effect from July 1, 2026, over their failure to meet regulatory requirements for continued operation.
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, Mr. Olayemi Cardoso, in line with the powers conferred on the Bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The CBN said the affected institutions failed to satisfy the conditions required for them to continue operating as licensed financial institutions.
It explained that the decision became necessary because of one or more regulatory infractions, including insufficient assets to meet liabilities, closure of operations without the approval of the CBN, and inactivity.
It also cited cessation of financial intermediation, failure to commence operations within 12 months of receiving their licences, and failure to maintain the minimum capital funds required by law as other reasons.
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Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors.
The Corporation, in a statement released yesterday, said it has been appointed the official Liquidator, pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act 2023.
“It is in this capacity that the Corporation wishes to inform the depositors of the banks in particular and the general public in general that the affected institutions are no longer authorised to conduct banking business in Nigeria”, it added.
The NDIC said depositors and the general public would be duly informed on an ongoing basis on further steps to be taken regarding the liquidation exercise.
“The revocation of the licences is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements,” the statement said.
The apex bank reiterated its commitment to maintaining a safe, sound and resilient financial system through effective supervision and enforcement of banking regulations.
“The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement added.
