The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks nationwide for failing to meet key regulatory requirements for continued operations.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, saying the revocation took effect from July 1, 2026, following the approval of the CBN Governor, Olayemi Cardoso.
According to the CBN, the action was taken in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The regulator said the affected institutions failed to satisfy the conditions required to continue operating as licensed financial institutions.
It explained that the decision followed findings that the banks had committed one or more regulatory infractions, including inadequate assets to meet liabilities, closure of operations without CBN approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of obtaining licences, and failure to maintain the prescribed minimum capital unimpaired by losses.
The affected institutions include Tier 1, Tier 2 and State microfinance banks operating across Lagos, Kano, the Federal Capital Territory, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra states.
Among the affected lenders 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 CBN said the move forms part of its ongoing efforts to strengthen financial sector stability, protect depositors and ensure compliance with existing laws and regulatory standards.
“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 said.
The apex bank reaffirmed its commitment to maintaining a safe, sound and resilient financial system, adding that it would continue to take appropriate supervisory and regulatory actions where necessary to sustain public confidence in Nigeria’s banking sector.
The development comes as the Nigeria Deposit Insurance Corporation recently disclosed that more than 281 million depositors are protected against bank failures through its deposit insurance scheme.
NDIC Managing Director and Chief Executive Officer, Thompson Sunday, said the corporation currently provides deposit insurance coverage for 914 licensed financial institutions, with more than 98 per cent of depositors fully insured following the upward review of deposit insurance limits in May 2024.
