The Central Bank of Nigeria, CBN, has revoked the operating licences of 46 microfinance banks across the country for failing to meet regulatory requirements.
The apex bank announced the decision in a statement issued on Wednesday, saying the revocation takes immediate effect.
According to the CBN, the action was taken in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, with the approval of the Governor of the Central Bank, Olayemi Cardoso.
The bank explained that the affected institutions failed to satisfy one or more of the conditions required for continued operations as licensed financial institutions.
It said the affected microfinance banks were found to have inadequate assets to meet liabilities, shut down operations without obtaining regulatory approval, ceased financial intermediation, failed to commence business within 12 months of receiving their licences, or did not maintain the required minimum capital base unimpaired by losses.
