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 apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, saying the revocation takes immediate effect.
According to the CBN, the action was taken pursuant to Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020, following findings that the affected institutions no longer met the conditions required to operate as licensed financial institutions.
The bank said investigations uncovered several regulatory infractions, including inadequate assets to meet liabilities, closure of operations without prior approval, prolonged inactivity and cessation of financial intermediation, failure to commence business within 12 months of obtaining licences, and failure to maintain the minimum capital requirement unimpaired by losses.
The CBN said the measure forms part of its ongoing efforts to strengthen the stability of Nigeria’s financial system and protect depositors from the risks associated with non-compliant financial institutions.
“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 statement read.
It added that the apex bank would continue to enforce strict regulatory standards to preserve public confidence in the banking sector.
“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 added.
The apex bank is expected to publish the full list of the affected 46 microfinance banks as part of the revocation notice.
The latest action underscores the CBN’s intensified regulatory oversight of financial institutions, particularly microfinance banks, amid efforts to sanitise the sector and ensure compliance with prudential guidelines.
FOLLOW US
FOR MORE HERE
