The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks across the country over their failure to comply with regulatory requirements.

The decision, which takes immediate effect, was announced on Wednesday in a statement signed by the CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali.

According to the apex bank, the action was taken pursuant to Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The CBN said the affected institutions committed one or more regulatory breaches, including inadequate assets to meet liabilities, suspension of operations without approval, prolonged inactivity, failure to commence business within 12 months of obtaining a licence, and failure to maintain the minimum capital required by law.

The regulator said the revocation forms part of its broader efforts to strengthen the financial system, protect depositors and ensure that licensed financial institutions comply with existing laws and regulatory standards.

“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 CBN said.

The apex bank reaffirmed its commitment to maintaining a safe, sound and resilient financial system, adding that it will continue to take appropriate supervisory and regulatory actions to sustain public confidence in Nigeria’s banking sector.