CBN revokes operating licenses of 46 MfBs for regulatory failure

Abuja: The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 Microfinance Banks (MfBs) with effect from July 1.

This is contained in a statement issued by Mrs Hakama Sidi-Ali , the Acting Director, Corporate Communications Department of the apex bank on Wednesday in Abuja.

Sidi-Ali said that the action was in accordance with CBN’s powers under sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

She said that the revocation was approved by the Governor of the CBN, Mr Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions.

“The revocation of the licenses is part of CBN’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 CBN remains committed to promoting a safe, sound and resilient financial system.

“It will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” she said.

Meanwhile, according to the revocation order, the action became necessary because of circumstances like insufficient assets to meet liabilities, closure of operations without the CBN approval, and inactivity and cessation of financial intermediation.

Others are failure to commence operations within 12 months of licence approval, and failure to maintain minimum capital funds unimpaired by losses.