CBN Revokes Licenses of 46 MFBs Due to Regulatory Breaches

The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 microfinance banks nationwide. The decision, effective July 1, 2026, stems from the banks’ failure to meet critical regulatory requirements for continued operation.

The CBN announced the revocation in a statement released Wednesday by Hakama Sidi-Ali, Acting Director of Corporate

Communications. This action, approved by CBN Governor Olayemi

Cardoso, aligns with the powers granted to the CBN under Sections 12 and 13 of the Banks and Other Financial Institutions

Act (BOFIA), 2020.

The statement clarified that the licenses were revoked because the affected institutions “failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.

“Governor Cardoso approved the measure after the banks consistently failed to meet these standards.

The regulator explained that the decision was necessitated by multiple infractions identified at the affected institutions.

These included:

Insufficient assets to cover liabilities.

Closure of operations without CBN approval.

Prolonged inactivity and cessation of financial intermediation.

Failure to commence operations within 12 months of receiving their licenses.

Failure to maintain the prescribed minimum capital, unimpaired by losses.

The affected lenders comprise Tier 1, Tier 2, and State microfinance banks located across numerous states such as Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo, and Anambra.

Notable banks among those affected 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 Kano-based institutions were also impacted, such as 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 stated that this measure is part of its broader efforts to enhance financial sector stability and ensure 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 affirmed.

Reaffirming its commitment to financial system stability, the CBN reiterated its resolve to take necessary supervisory and regulatory

actions. “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 concluded.

Earlier, the Nigeria Deposit Insurance Corporation (NDIC) reported that over 281 million depositors in Nigeria’s banking system are protected against bank failure. This follows reforms that significantly expanded deposit insurance coverage and accelerated reimbursement for customers of failed banks.

Thompson Sunday, Managing Director and Chief Executive Officer of the NDIC, shared this information during the second quarter 2026 Citizens and Stakeholders’ Engagement Session organized by the Federal Ministry of Finance in Abuja.

According to Sunday, the corporation currently provides deposit insurance coverage across 914 licensed financial institutions, with over 98 percent of depositors fully insured for their entire balances due to an upward review of deposit insurance limits in May 2024.