The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country for failing to meet key regulatory requirements, in a move aimed at strengthening the stability of the nation’s financial system.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, stating that 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 pursuant to Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, after the affected institutions failed to satisfy conditions required for continued operation as licensed financial institutions.
“The Central Bank of Nigeria has 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 statement read.
The regulator explained that investigations revealed one or more serious regulatory infractions by the affected banks, including inadequate assets to meet liabilities, unauthorised closure of operations, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licensing, and inability to maintain the prescribed minimum capital unimpaired by losses.
The affected institutions cut across Tier 1, Tier 2 and State microfinance banks operating 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.
Among the banks whose licences were withdrawn are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate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.
The exercise also affected several Kano-based lenders, 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 revocation forms part of its broader regulatory efforts to safeguard the financial sector, protect depositors and ensure that licensed institutions comply with existing banking laws and prudential 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 added.
The apex bank reaffirmed its commitment to maintaining a safe, sound and resilient financial system, stressing that it would continue to deploy appropriate supervisory and enforcement measures where necessary to sustain public confidence in the banking sector.
The development comes amid assurances by the Nigeria Deposit Insurance Corporation (NDIC) that depositors remain protected against bank failures. The corporation recently disclosed that more than 281 million depositors are covered under Nigeria’s deposit insurance scheme across 914 licensed financial institutions.
Speaking at the second quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance in Abuja, the NDIC Managing Director and Chief Executive Officer, Thompson Sunday, said over 98 per cent of depositors are now fully insured for their entire balances following the upward review of deposit insurance limits in May 2024. He noted that the enhanced insurance coverage and faster reimbursement processes were designed to strengthen public confidence in the country’s financial system.
