Full List: CBN Names 46 microfinance banks with Revoked Licences

– Kano State accounted for the highest number with 13 banks

– Lagos follows with eight

Akakan Umoh

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks for failing to meet the regulatory requirements for continued operation.

Later, the apex bank has released the names of the affected banks.

This brings to 178 the number of the banks whose licences had been revoked by the apex bank between 2024 and this year.

CBN stated on Wednesday that the revocation was carried out in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

According to CBN, the licences were revoked because the affected microfinance banks had insufficient assets to meet their liabilities, closed operations without regulatory approval, or became inactive and ceased financial intermediation.

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The revocations were also attributed to the banks’ failure to commence operations within 12 months of obtaining their licences and failure to maintain the minimum capital funds unimpaired by losses.

On the list of 46 microfinance banks whose licences were revoked, Kano State accounted for the highest number, with 13 banks, followed by Lagos with 8.

Also, Abia, the Federal Capital Territory (Abuja), Kaduna, Kebbi, Niger, Ogun, Plateau, recorded two banks each, while Anambra, Akwa Ibom, Bayelsa, Benue, Cross River, Delta, Kwara, Ondo, Osun, Oyo, and Rivers had one bank each.

By category, 25 of the affected institutions were Tier 2 microfinance banks, 18 were Tier 1 microfinance banks, and three were State microfinance banks.

The regulator said the license revocation forms part of its ongoing efforts to strengthen oversight of the financial system and ensure that licensed financial institutions comply with extant laws and prudential regulations.

Here are the microfinance banks whose licenses were revoked: