The Nigeria Deposit Insurance Corporation (NDIC) has initiated the takeover of assets from 46 microfinance banks following the revocation of their operating licenses by the Central Bank of Nigeria.
The regulator issued a public warning urging customers and counterparties to cease all transactions with the affected institutions immediately.
This enforcement action underscores the ongoing regulatory cleanup of Nigeria's microfinance sector.
The NDIC's intervention aims to protect depositors and stabilize the financial system by removing insolvent entities from the market.
The move follows a broader trend of stricter oversight and consolidation within the country's banking industry.
The scale of the takeover highlights the fragility of smaller lending institutions in the current economic environment.