The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country over multiple regulatory breaches, in a move aimed at strengthening the stability of the nation’s financial system and protecting depositors.
The revocation, which takes effect from July 1, 2026, was approved by the Governor of the CBN, Olayemi Cardoso, following the failure of the affected institutions to meet the regulatory conditions required for continued operation as licensed financial institutions.
The decision was announced in a statement issued on Wednesday by the Acting Director of Corporate Communications, Hakama Sidi-Ali, who said the action was taken pursuant to the powers vested in the apex bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to the statement, “The Central Bank of Nigeria 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The CBN explained that the licences were withdrawn after the affected institutions failed to comply with regulatory requirements necessary to continue operating as licensed financial institutions.
It said investigations established one or more serious infractions against the banks, including insufficient assets to meet liabilities, closure of operations without prior approval from the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of obtaining licences, and failure to maintain the statutory minimum capital required for operation.
The affected institutions cut across Tier 1, Tier 2 and State microfinance banks located in 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. Kano recorded the highest number of affected banks, followed by Lagos.
Among the revoked institutions 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 stressed that the exercise forms part of its ongoing supervisory mandate to strengthen confidence in Nigeria’s financial system.
“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 CBN further reaffirmed its commitment to maintaining a sound banking system, stating that it would continue to take appropriate supervisory and regulatory actions where necessary to preserve public confidence in Nigeria’s financial sector.
The latest action is one of the most significant regulatory interventions in the microfinance banking subsector in recent years and underscores the CBN’s renewed emphasis on stricter compliance, corporate governance and financial soundness under its ongoing banking sector reforms.
