The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 microfinance banks due to non-compliance with regulatory frameworks.The decision comes amid ongoing efforts to strengthen financial sector oversight and protect consumers from predatory lending practices.

The affected institutions were found to have breached key regulations, including inadequate capital adequacy ratios, poor internal controls, and failure to report suspicious transactions.The CBN emphasized that this move is part of its mandate to ensure institutional integrity and prevent systemic risks.The affected banks are now required to submit corrective action plans within 90 days, or face further regulatory action.Industry experts noted that while the move may disrupt some microfinance operations, it is crucial for maintaining trust in the financial system.The CBN also announced plans to increase transparency by publishing a public register of licensed microfinance institutions.This development underscores the regulator's commitment to balancing financial inclusion with prudential safeguards.