The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks nationwide, citing multiple regulatory infractions ranging from insolvency and prolonged inactivity to failure to meet minimum capital requirements.
The decision, which takes effect from July 1, 2026, was announced in a statement issued on Wednesday by the Acting Director of Corporate Communications at the CBN, Hakama Sidi-Ali.
According to the apex bank, the revocation followed the approval of the Governor of the Central Bank of Nigeria, Olayemi Cardoso, in line with provisions contained in the Banks and Other Financial Institutions Act, 2020.
“The Central Bank of Nigeria (CBN) has revoked the operating licenses of forty-six (46) Microfinance Banks with effect from July 1, 2026, in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020,” the statement said.
The regulator explained that the affected institutions failed to satisfy the conditions necessary to continue operating as licensed financial entities.
“The revocation was approved by the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” it added.
The CBN stated that investigations established one or more breaches against the institutions, necessitating supervisory intervention.
Among the infractions identified were inadequate assets to meet liabilities, suspension of operations without prior approval from the CBN, prolonged dormancy, cessation of financial intermediation activities, failure to commence operations within 12 months after licensing and inability to maintain the prescribed minimum capital base unimpaired by losses.
The affected institutions cut across Tier 1, Tier 2 and state microfinance banks operating in several parts of the country.
States impacted include Lagos, Kano, the Federal Capital Territory, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra.
Among the institutions whose licences were withdrawn are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank and NOW NOW Digital Microfinance Bank.
Several Kano-based lenders were also affected, including Bompai Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, TOFA Microfinance Bank, Kanopoly Microfinance Bank and Esteem Microfinance Bank.
The apex bank said the move is part of ongoing efforts to strengthen financial sector stability, protect depositors and enforce compliance with regulatory standards.
“The revocation of the licenses is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements,” the statement said.
The CBN reiterated its commitment to promoting a safe, sound and resilient financial system through sustained supervisory oversight.
The development comes amid broader reforms within Nigeria’s banking sector, with regulators intensifying oversight of financial institutions to maintain public confidence and enhance stability.
The Nigeria Deposit Insurance Corporation recently disclosed that more than 281 million depositors are protected under the country’s deposit insurance framework, with over 98 per cent of depositors fully covered following reforms introduced in 2024.
