CBN Revokes Operating Licences of 46 Community Banks

For failing to comply with regulatory requirements, the Central Bank of Nigeria, CBN, has revoked the
operating licences of 46 microfinance banks across the country.

In a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, the Apex Bank made it clear that the revocation takes immediate effect, adding that it is in line with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

According to the CBN, the affected microfinance banks failed to meet the conditions required to continue operating as licensed financial institutions, including insufficient assets to meet liabilities and closure of operations without the approval of the apex bank.

It further identified other reasons to include prolonged inactivity and cessation of financial intermediation, failure to commence business within 12 months of receiving a licence, as well as failure to maintain the required minimum capital unimpaired by losses.

“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 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 pointed out.