CSOs Urge CBN To Review Revocation Of 46 Microfinance Banks’ Licences

A coalition of Civil Society Organisations (CSOs) has called on the Central Bank of Nigeria to urgently review the impact of the revocation of the operating licences of 46 microfinance banks across the country, warning that the decision could worsen financial exclusion in Kano State.

The appeal was contained in a statement made available to LEADERSHIP in Kano on Wednesday, signed by the Executive Director of African Centre for Civil Rights, Social Justice and Good Governance, Bashir Shehu and the co-convener, Hajiya Lami Garba of Centre for Women Development Initiative, for the concerned groups.

The groups expressed concern that 13 of the affected microfinance banks were located in Kano, describing the development as a major setback for financial inclusion in the state.

According to the coalition, Kano originally had 40 licensed microfinance banks, and the loss of 13 institutions would significantly weaken access to financial services, particularly in rural communities where many residents rely on microfinance banks for savings, loans and other basic banking services.

The groups said many of the affected institutions operated in local government areas with limited access to conventional banking, warning that the closures could leave thousands of low-income earners, farmers and small-scale entrepreneurs without viable financial services.

While acknowledging the apex bank’s responsibility to safeguard the stability of the financial system and enforce regulatory compliance, the organisations urged regulators to balance enforcement with the socio-economic consequences of such actions.

They warned that the licence revocations could erode public confidence in the microfinance sector, increase hardship for depositors and small businesses, and force more rural residents to depend on informal lenders charging exorbitant interest rates.

The coalition called on the CBN, the Nigeria Deposit Insurance Corporation, the Kano State Government, lawmakers and other stakeholders to take urgent measures to mitigate the impact of the closures.

Among its recommendations, the groups urged the NDIC to ensure the prompt and transparent reimbursement of depositors affected by the licence revocations.

They also called on the Kano State Government to engage regulators to strengthen viable microfinance institutions, promote financial literacy, and adopt policies that support financial inclusion rather than deepen exclusion in underserved communities.