The Central Bank of Nigeria (CBN) is to revoke the operating licences of illiquid microfinance banks.

Vanguard newspaper reports the CBN sent letters in respect of this directive to the affected microfinance banks in the country.

In the letter, the CBN directed the troubled microfinance banks to stop receiving deposits or extending loans until they manage to strengthen their financial positions.

The CBN is also planning to release a list of the affected banks early in 2010.