The Central Bank of Nigeria (CBN) has stepped up regulatory enforcement as CBN revokes the operating licences of 46 microfinance banks over insolvency, inadequate capital, prolonged inactivity and other regulatory breaches.
The revocation became effective on July 1, 2026, after receiving approval from the Governor of the Central Bank of Nigeria, Olayemi Cardoso. According to the apex bank, the affected institutions failed to meet the regulatory requirements necessary to continue operating as licensed financial institutions.
The decision was announced in a statement signed by the Director of Corporate Communications, Hakama Sidi Ali. The CBN said the action followed supervisory examinations conducted under the provisions of the Banks and Other Financial Institutions Act (BOFIA), 2020.
CBN revokes licences over multiple violations
The regulator said the affected microfinance banks committed one or more serious regulatory infractions that warranted the withdrawal of their licences.
According to the statement, the institutions failed to maintain sufficient assets to meet liabilities, did not sustain the minimum capital base required by law, ceased financial intermediation, shut down operations without regulatory approval, or failed to commence operations within 12 months after obtaining their licences.
As a result, CBN revokes their licences in line with its statutory mandate to supervise licensed financial institutions and protect the integrity of Nigeria’s banking sector.
The apex bank said the decision followed due regulatory processes and was approved by Governor Olayemi Cardoso after the institutions failed to satisfy the conditions for continued operation.
CBN revokes licences to protect depositors
The CBN said CBN revokes licences to ensure that weak financial institutions do not threaten depositors or undermine confidence in the financial system.
According to the regulator, maintaining effective supervision remains essential to promoting financial stability and protecting customers who rely on licensed institutions for banking services.
The bank added that removing insolvent and inactive institutions from the financial system strengthens public trust and supports a healthier banking environment.
Furthermore, the CBN reaffirmed its commitment to taking timely supervisory and regulatory actions whenever financial institutions fail to comply with prudential guidelines.
CBN revokes licences of banks across Nigeria
The 46 affected institutions include Tier 1, Tier 2 and State Microfinance Banks operating across several states.
They include Minji-Se Churchill MFB, Merchant MFB, Janmaa MFB, Busu MFB, Gold MFB, Zain MFB, Bompai MFB, Ajwa MFB, NOW NOW DIGITAL MFB, Crystabel Microfinance Bank, Chanelle MFB, Abia SME MFB, Kamba MFB, Iwade MFB, Winview MFB, Zuru MFB, Minjibir MFB, Shanono MFB, Sumaila MFB and Rimin Gado MFB.
Also affected are Mwaghavul MFB, Sycamore MFB, TOFA MFB, Safegate MFB, Creekline MFB, Bestar MFB, Livingspring MFB, Apple MFB, Stanford MFB, Frontline MFB, Zafec MFB, Supreme MFB, Bejin-Doko MFB, Kanopoly MFB, Bellbank MFB, Yeneng MFB, Creditville MFB, MBAG MFB, Straight Sahara MFB, OurPass MFB, Verdant MFB, Basawa MFB, Casha MFB, Esteem MFB, Entrepreneur MFB and Avantus MFB.
The affected banks operate in Lagos, Kano, Rivers, Ogun, Plateau, Kebbi, Kaduna, Bayelsa, Benue, Delta, Niger, Osun, Ondo, Cross River, Abia, Kwara and the Federal Capital Territory.
Why CBN revokes non-compliant microfinance banks
The latest regulatory action reflects the CBN’s determination to strengthen governance and accountability within Nigeria’s microfinance banking industry.
Microfinance banks remain vital to expanding financial inclusion by providing credit and banking services to small businesses, entrepreneurs and underserved communities. However, institutions that fail to meet capital requirements or comply with banking regulations can expose customers to significant financial risks.
For that reason, CBN revokes licences where institutions consistently fail to satisfy statutory obligations. The regulator stressed that every licensed bank must comply with prudential standards, capital requirements and operational guidelines throughout its existence.
Industry stakeholders believe CBN revokes licences not only to enforce compliance but also to improve confidence in Nigeria’s financial sector. They say the latest action sends a clear message that the apex bank will continue to prioritise financial stability, depositor protection and strict regulatory enforcement as it strengthens oversight of the country’s banking industry.
