CBN Revokes Licences of 46 Microfinance Banks Over Regulatory Violations
The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks across the country after the institutions failed to comply with key regulatory requirements required for continued operation.
According to a statement released by the apex bank, the decision took effect on July 1, 2026, following approval by the Governor of the Central Bank of Nigeria, Olayemi Cardoso.
The CBN explained that the action was taken under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, which empowers the regulator to revoke licences of financial institutions that fail to meet statutory obligations.
The apex bank stated that the affected microfinance banks were found to have committed one or more regulatory breaches that made them unfit to continue operating within Nigeria’s financial system.
Among the reasons cited were inadequate assets to cover liabilities, failure to maintain the required minimum capital, prolonged inactivity, suspension of financial operations without regulatory approval, and failure to commence business within the approved period after obtaining operating licences.
The revoked institutions include Tier 1, Tier 2 and State microfinance banks operating across several states, including Lagos, Abuja, Kano, Ogun, Rivers, Kaduna, Bayelsa, Plateau, Delta, Oyo, Ondo, Osun, Benue, Cross River, Kwara, Kebbi, Niger, Abia and Anambra.
Some of the affected institutions include 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 microfinance banks based in Kano State 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.
According to the CBN, the revocation forms part of ongoing efforts to strengthen the country’s financial system, enforce regulatory compliance and ensure that licensed financial institutions operate in line with established laws and prudential guidelines.
The regulator maintained that protecting depositors and preserving confidence in the banking industry remain among its highest priorities.
The apex bank also reaffirmed its commitment to maintaining a stable, resilient and well-regulated financial sector through continuous supervision and timely enforcement actions whenever necessary.
Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) recently assured bank customers that depositors remain protected against bank failures through its deposit insurance scheme.
The corporation disclosed that more than 281 million depositors are currently covered across over 900 licensed financial institutions nationwide following reforms that expanded insurance coverage and improved the speed of reimbursement for customers of failed banks.
The NDIC also noted that over 98 percent of depositors are now fully insured for their total deposits after the upward review of deposit insurance limits introduced in 2024.
The latest action by the Central Bank highlights its determination to ensure that only financially sound and compliant institutions continue operating, while protecting customers and promoting long-term stability within Nigeria’s banking sector.