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 disclosed this in a statement issued on Wednesday and signed by
its Acting Director of Corporate Communications, Hakama Sidi-Ali. The
revocation, which took effect from July 1, 2026, followed the approval of the
CBN Governor, Olayemi Cardoso.
According to the statement, the action was taken in line with the powers
conferred on 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 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 read.
The CBN said 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 explained that the decision became necessary because one or
more of several infractions were established against the affected institutions.
These included insufficient assets to meet liabilities, closure of operations
without the approval of the CBN, prolonged inactivity and cessation of financial
intermediation, failure to commence operations within 12 months of receiving
licences and failure to maintain the prescribed minimum capital unimpaired by
losses.
The affected lenders comprise Tier 1, Tier 2 and State microfinance banks
spread across several states, including Lagos, Kano, Abuja, Abia, Ogun,
Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi,
Kwara, Ondo, Osun, Oyo and Anambra.
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 said the measure forms part of its broader efforts to strengthen
financial sector stability and enforce compliance with existing laws.
“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 added.
Reaffirming 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 earlier said that more than 281
million depositors across the country’s banking system are protected against
bank failure, following reforms that significantly expanded deposit insurance
coverage and accelerated reimbursement of customers of failed banks.
The Managing Director and Chief Executive Officer of the NDIC, Thompson
Sunday, disclosed this recently during the second quarter 2026 Citizens and
Stakeholders’ Engagement Session organised by the Federal Ministry of
Finance in Abuja.
According to Sunday, the corporation currently provides deposit insurance
coverage across 914 licensed financial institutions, while over 98 per cent of
depositors are fully insured for their entire balances following the upward
review of deposit insurance limits in May 2024.