CBN’s revocation of microfinance bank licenses signals serious regulatory concerns – Economist warns

The revocation of the operating licenses of 13 microfinance banks successful Kano has raised concerns among customers and tiny concern owners, with an economist informing that specified enactment by the Central Bank of Nigeria (CBN) usually points to important fiscal oregon governance problems.

The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 microfinance banks crossed Nigeria implicit their nonaccomplishment to conscionable regulatory requirements for continued operation.

In a connection issued connected Wednesday, the apex slope said the revocation took effect from July 1, 2026, successful accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The CBN said the enactment was approved by its Governor, Olayemi Cardoso, pursuing the affected banks’ nonaccomplishment to conscionable the regulatory standards required of licensed fiscal institutions.

According to the statement, the affected institutions were recovered to person 1 oregon much deficiencies, including insufficient assets to conscionable liabilities, closure of operations without the CBN’s approval, prolonged inactivity and cessation of fiscal intermediation, fail...