By Onu Okorie
Some financial analysts have given credence to the recent closure of 46 Mico Financ Banks MfBs in the country by the Central Bank of Nigeria, CBN.
Speaking with the Newscraft in a telephone interview, a renown Nigerian economist and the former Director General of the Lagos Chamber of Commerce and Industry LCCI Mudashiru Yusuf said that what the apex bank did is also in the interest of Small and Medium Scale Business.
He argued that the closure of non performing banks would not only sanitise the system but will also send a signal to the existing one.
“We have many MfB but it will take a healthy MfB to be able to support the smes. If MfB is not healthy, there no way they can support the economy, infact they can create more problems”.
“If they are not healthy they can go under and depositors will loose their money. So what the CBN is doing is to ensure a sound financial system that can support the SMEs.”
“So what CBN has done is actually in the interest of small business that use MfBs. “It is important that when you are banking with the remaining MfBs you have confidence that yes, the banks are safe and sound.”
“Where I have issue is a situation where 46 of them are closed at the same time, it shows there’s concern. If there has been effective and consistent oversight, it wouldn’t have gotten to that extent.”
Speaking also Professor Christopher Kalu of Economic Department, Nnamdi Azikiwe university Awka Anambra State said that the essence of revoking the licenses of non performing MfBs is to ensure that such segment of the economy is healthy. According to him, “some of the reasons given for the action taken by CBN is the inability of the bank owners to start operations as expected.
“Other MfBs will definitely sit up following the decisive action applied by CBN. It would bring about stability in the MfBs. He said that it would not affect micro enterprises. It would rather help stabilise the activities of enterpreneurs.”
On his part an industrialist, Mr Ayodele Adebowale said that the action of CBN reflects a structured and disciplined approach to resolving failed banks while maintaining stability in the financial system.
“Overall, the final dissolution process signals regulatory maturity and reinforces trust in Nigeria’s banking industry framework.” He argued.
It would be recalled that the CBN revoked the operating licences of 46 microfinance banks MFBs across the country, effective July 1, 2026. A statement made available in Abuja by CBN, cited widespread failure to meet regulatory requirements for licensed financial institutions as the reason behind the action.
Approved by the CBN Governor, Mr. Olayemi Cardoso, the apex bank said the action was taken under its powers as spelled out in Sections 12 and 13 of the Banks and Other Financial Institutions Act BOFIA, 2020.
In a statement signed by the Acting Director of the Corporate Communications Department, Mrs. Hakama Sidi-Ali, the CBN said the affected institutions fell short in one or more of five key regulatory areas: insufficient assets to cover liabilities; unauthorised closure of operations; prolonged inactivity and cessation of financial intermediation; failure to commence operations within 12 months of licence approval; and failure to maintain minimum capital funds unimpaired by losses.
The CBN described the mass revocation as part of its continued drive to safeguard the stability of Nigeria’s financial sector and protect depositors’ funds. “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.