Business
CBN: Major regulatory shakeup in microfinance banking sector
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs) in a fresh move to strengthen regulatory oversight, promote financial system stability, and improve confidence in Nigeria’s microfinance banking sector.
The action, which forms part of the apex bank’s ongoing supervisory and reform efforts, reflects its determination to ensure that only financially sound and well-governed institutions continue to operate within the country’s financial system.
Industry stakeholders say the latest licence revocations underscore the CBN’s commitment to enforcing compliance with prudential regulations and sanitising the microfinance banking landscape, which has witnessed rapid expansion over the years but continues to face challenges relating to weak corporate governance, inadequate capitalization, poor risk management, and non-compliance with regulatory requirements.
The affected institutions reportedly failed to meet various regulatory obligations, including maintaining minimum capital requirements, complying with prudential guidelines, submitting statutory returns, and adhering to operational standards prescribed by the apex bank.
The revocation was carried out in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, which empowers the CBN to withdraw the licences of financial institutions that become insolvent, cease operations, fail to comply with regulatory directives, or conduct business in a manner considered detrimental to depositors and the wider financial system.
The latest action forms part of broader reforms by the CBN aimed at enhancing the resilience of Nigeria’s banking industry and protecting depositors’ funds.
Financial analysts noted that while the revocation may initially affect customers of the affected institutions, decisive regulatory intervention is necessary to preserve public confidence in the financial system and prevent systemic risks from spreading to healthier institutions.
According to experts, prompt regulatory action helps eliminate weak operators whose continued existence could undermine financial inclusion efforts and expose depositors to unnecessary risks.
The CBN has consistently maintained that strict supervision remains essential for building a safe, efficient, and transparent financial system capable of supporting sustainable economic growth.
Nigeria’s microfinance banking industry plays a critical role in expanding access to financial services for low-income households, smallholder farmers, artisans, traders, and micro, small and medium-sized enterprises (MSMEs).
However, the sector has continued to grapple with numerous operational challenges, including rising inflation, exchange rate volatility, increasing operating costs, weak internal controls, loan defaults, cybersecurity risks, and limited access to long-term funding.
These pressures have placed significant strain on the financial health of many smaller operators, making regulatory compliance increasingly difficult.
Analysts believe stronger institutions with adequate capital and sound governance structures are better positioned to withstand economic shocks and continue providing financial services to underserved communities.
Customers of the affected microfinance banks are expected to receive further guidance from the relevant regulatory authorities regarding the resolution process and the treatment of deposits and other liabilities.
Financial experts have advised depositors to verify the status of their financial institutions through official CBN publications and maintain relationships with licensed and adequately regulated banks.
They also noted that the Nigeria Deposit Insurance Corporation (NDIC), where applicable, would work alongside the CBN in resolving failed financial institutions and protecting insured depositors in accordance with existing laws.
The licence revocations come amid broader reforms across Nigeria’s financial sector, including ongoing bank recapitalisation, stricter corporate governance requirements, enhanced risk-based supervision, and measures aimed at strengthening financial stability.
The CBN has repeatedly stated that maintaining a resilient banking sector remains critical to supporting economic growth, improving financial inclusion, and restoring investor confidence.
Industry observers expect the apex bank to sustain rigorous monitoring of licensed financial institutions while encouraging consolidation among weaker operators to build stronger and more resilient microfinance banks capable of supporting Nigeria’s growing economy.
The latest regulatory action sends a clear signal that the CBN will continue to enforce compliance with banking regulations and hold financial institutions accountable for meeting the standards required to safeguard depositors and preserve the integrity of Nigeria’s financial system.
Business
North African Airline incurs Nigeria’s wrath
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.
The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.
According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.
The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.
Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.
“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.
He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.
According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.
Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.
He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.
The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).
Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.
He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.
The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).
“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.
The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.
Business
₦10m monthly made from akara and bread business -Umo Eno
Philippine Duru
philippineobetoduru@gmail.com
08034905774
Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.
Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.
According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.
“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.
The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.
Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.
His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.
The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.
Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.
His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.
Business
All share index gains about 0.81% as NGX rebounds
The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.
The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.
With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.
The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.
Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.
Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.
Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.
Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.
As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.
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