The Central Bank of Nigeria (CBN) has revoked the operating licence of Abia SME Microfinance Bank, making it one of 46 microfinance banks affected by the regulatory action.
Abia SME Microfinance Bank was established in 2019 during the administration of former Abia State Governor, Dr. Okezie Ikpeazu, with the objective of providing financial services and support to low-income traders, artisans and small business owners across the state.
In 2025, the administration of Governor Alex Otti reconstituted the bank’s board as part of efforts to reposition the institution and strengthen access to financing for micro, small and medium-sized enterprises (MSMEs).
Announcing the revocation, CBN Governor Olayemi Cardoso said the affected institutions failed to meet key regulatory requirements necessary to continue operating as licensed financial institutions.
According to the apex bank, the affected microfinance banks fell short of prescribed standards relating to minimum capital requirements, operational performance and financial obligations.
The CBN noted that compliance with regulatory guidelines is essential to maintaining the stability, integrity and soundness of Nigeria’s financial system, stressing that licensed institutions are expected to meet all prudential and operational standards set by the regulator.
The revocation of the licences is expected to raise concerns among customers and stakeholders, particularly in Abia State, where the bank was created to expand financial inclusion and provide funding opportunities for small-scale entrepreneurs and underserved communities.
Industry observers say the development underscores the challenges facing some microfinance institutions in Nigeria, including capital adequacy issues, governance concerns and difficulties in meeting evolving regulatory requirements.
The Central Bank has yet to provide further details on the next steps regarding the assets, liabilities and obligations of the affected banks, as customers await clarification on the implications of the regulatory action.
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