CBN Revokes Licences of 46 Microfinance Banks in Fresh Crackdown on Regulatory Breaches
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs) across the country, citing widespread regulatory breaches and failure by the affected institutions to meet the minimum conditions required to continue operating as licensed financial institutions.
The revocation, which took effect on 1 July 2026, was approved by the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, and announced in a statement issued on Wednesday by the Acting Director of Corporate Communications, Hakama Sidi-Ali.
According to the apex bank, the action was taken pursuant to Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, which empower the CBN to withdraw the licences of financial institutions that fail to comply with regulatory standards or operate in a manner that threatens the safety and soundness of the financial system.
The regulator explained that the affected microfinance banks were found to have committed one or more serious infractions, making it impossible for them to continue operating under existing banking regulations.
Among the reasons cited by the CBN were inadequate assets to cover liabilities, abandonment of banking operations without obtaining regulatory approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months after obtaining banking licences, and inability to maintain the statutory minimum capital required for licensed microfinance institutions.
“The revocation was approved by the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” the statement said.
The affected institutions span Tier 1, Tier 2 and State microfinance banks operating in numerous states, including Lagos, Kano, the Federal Capital Territory, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra.
Among the institutions whose licences were withdrawn are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate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.
A significant number of 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 CBN stressed that the latest enforcement action forms part of its broader strategy to strengthen regulatory compliance, improve governance within Nigeria’s financial sector and safeguard the interests of depositors.
“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 resilient banking system, stating that it would continue to deploy supervisory and enforcement measures whenever necessary to preserve public confidence in the nation’s financial institutions.
Microfinance banks occupy a critical position in Nigeria’s financial inclusion drive by providing banking services, savings products and small loans to low-income earners, rural communities, artisans, traders, farmers and micro, small and medium-sized enterprises (MSMEs) that are often underserved by conventional commercial banks.
According to the CBN’s National Financial Inclusion Strategy, Nigeria has made significant progress in expanding access to formal financial services over the past decade through the growth of microfinance institutions, agency banking, mobile money and digital financial services.
The country has set ambitious targets to increase formal financial inclusion, recognising that access to finance is essential for poverty reduction, job creation and economic growth.
However, financial sector analysts note that weak corporate governance, inadequate capitalisation, poor risk management, high non-performing loans and operational inefficiencies have continued to challenge many microfinance institutions, particularly smaller operators.
The latest revocation also aligns with the Cardoso-led CBN’s wider reform agenda aimed at strengthening financial sector stability. Since assuming office, the apex bank has intensified regulatory oversight of banks and other financial institutions, introduced measures to improve corporate governance, enhanced prudential supervision and reinforced compliance with anti-money laundering and consumer protection regulations.
Industry observers say the withdrawal of licences from non-compliant operators is intended to improve confidence in the microfinance sector by ensuring that only financially sound and well-governed institutions remain in operation.
While the development may temporarily affect customers of the affected institutions, banking experts say the CBN’s intervention is designed to prevent greater systemic risks that could arise from allowing distressed institutions to continue operating.
The regulator urged all licensed financial institutions to maintain strict compliance with prudential guidelines, capital requirements and corporate governance standards, warning that supervisory actions would continue against institutions that fail to meet statutory obligations.
The CBN concluded by reiterating its commitment to promoting a safe, sound and resilient financial system capable of supporting sustainable economic development and protecting the interests of millions of Nigerian depositors.
