The Central Bank of Nigeria (CBN) has revoked the operating licences of **46 microfinance banks** with immediate effect, citing serious and unresolved regulatory violations.
The action, which took effect from July 1, 2026, was approved by CBN Governor Olayemi Cardoso under the provisions of the Banks and Other Financial Institutions Act 2020. The affected institutions were found to have breached key operational standards, including insufficient assets to meet liabilities, unauthorised closure of business premises, prolonged inactivity, failure to commence operations within the stipulated timeframe, and non-compliance with minimum capital requirements.
NDIC Takes Charge as Liquidator
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the official liquidator for the closed banks. Depositors of the affected institutions will be guided through the claims process in the coming weeks.
This represents one of the largest single regulatory actions against microfinance banks in recent years. It follows a similar exercise in 2023 when the CBN revoked licences of 179 microfinance banks and several other financial entities for comparable infractions.
Analysts Anticipate Sector Consolidation
Financial experts expect the mass revocation to accelerate consolidation within the microfinance sub-sector. Stronger, better-capitalised institutions are likely to absorb viable assets, customer bases, or even merge with some of the affected players, ultimately leading to a healthier and more resilient industry.
While the move may cause temporary disruption for some depositors and borrowers in rural and semi-urban areas, analysts believe it will enhance overall sector stability, improve corporate governance, and restore greater public confidence in microfinance institutions.
The CBN has consistently signalled zero tolerance for weak governance, chronic undercapitalisation, and operational lapses across all tiers of the financial system. The latest crackdown reinforces the apex bank’s commitment to safeguarding the integrity of Nigeria’s financial services industry.
