The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing their failure to meet key regulatory requirements for continued operations.
The apex bank confirmed this in a statement issued on Wednesday and signed by Hakama Sidi-Ali, acting director of corporate communications.
The revocation takes effect on July 1, 2026, with the permission of CBN Governor Olayemi Cardoso.
According to the statement, the action was conducted in accordance with the authorities granted to the CBN under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.
“The Central Bank of Nigeria has revoked the operating licences 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 read.
The CBN noted that the revocation was approved after the affected institutions failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.
“The revocation was approved by the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” it stated.
The regulator noted that the judgement was required because one or more of many breaches were found against the concerned institutions.
These included insufficient assets to meet liabilities, ceasing operations without CBN approval, prolonged inactivity and cessation of financial intermediation, failing to begin operations within 12 months of receiving licences, and failing to maintain the prescribed minimum capital unaffected by losses.
Tier 1, Tier 2, and state microfinance banks in various states, including Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo, and Anambra, have been affected.
Among them 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 institutions 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 mentioned that the measure forms part of its broader efforts to strengthen financial sector stability and enforce compliance with existing laws.
“The revocation of the licences 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 added.
Stressing its commitment to financial system stability, the CBN said it would continue to take supervisory and regulatory actions where necessary.
“The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement said.
The Nigeria Deposit Insurance Corporation recently announced that more than 281 million depositors across the country’s banking system are safeguarded against bank collapse, following reforms that considerably increased deposit insurance coverage and accelerated compensation of customers of failed banks.
The Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, announced this recently during the second quarter of 2026 Citizens’ and Stakeholders’ Engagement Session hosted by the Federal Ministry of Finance in Abuja.
According to Sunday, the corporation presently provides deposit insurance coverage throughout 914 licensed financial institutions, while over 98 per cent of depositors are completely protected for their entire amounts following the upward revision of deposit insurance limits in May 2024.
