The revocation of the operating licenses of 13 microfinance banks in Kano has raised concerns among customers and small business owners, with an economist warning that such action by the Central Bank of Nigeria (CBN) usually points to significant financial or governance problems.
The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 microfinance banks across Nigeria over their failure to meet regulatory requirements for continued operation.
In a statement issued on Wednesday, the apex bank said the revocation took effect from July 1, 2026, in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The CBN said the action was approved by its Governor, Olayemi Cardoso, following the affected banks’ failure to meet the regulatory standards required of licensed financial institutions.
According to the statement, the affected institutions were found to have one or more deficiencies, including insufficient assets to meet liabilities, closure of operations without the CBN’s approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of license approval, and failure to maintain the minimum capital requirement due to accumulated losses.
But speaking to DAILY POST, Dr. Abdulnasir Turawa Yola, an economist and lecturer in the Department of Economics and Development Studies at the Federal University Dutse, said the CBN does not revoke a bank’s license without identifying serious regulatory concerns.
“Whenever a bank’s license is revoked, it means the CBN has detected a problem. It could be that the institution no
