CBN Revokes Licences of 46 Microfinance Banks Over Regulatory Breaches

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country over their failure to comply with key regulatory requirements governing financial institutions.

The apex bank announced the decision in a statement issued on Wednesday and signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali.

According to the statement, the revocation took effect from July 1, 2026, following the approval of the Governor of the Central Bank of Nigeria, Olayemi Cardoso.

The CBN said the action was taken in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

“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 the affected banks failed to satisfy the conditions required to continue operating as licensed financial institutions.

Among the infractions identified were inadequate assets to meet liabilities, unauthorised closure of operations, prolonged inactivity, failure to commence business within 12 months of obtaining licences, and failure to maintain the prescribed minimum capital unimpaired by losses.

The affected institutions include Tier 1, Tier 2 and State microfinance banks spread across several 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.

Some of the affected banks 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 CBN stated that the revocation forms part of its ongoing efforts to strengthen the stability of Nigeria’s financial system, safeguard depositors’ funds and ensure strict compliance with banking regulations.

It reaffirmed its commitment to maintaining a safe, sound and resilient financial system through continuous supervisory and regulatory actions where necessary.

The development comes as the Nigeria Deposit Insurance Corporation (NDIC) recently disclosed that over 281 million depositors are protected against bank failures through its deposit insurance scheme, following reforms that expanded insurance coverage across more than 900 licensed financial institutions nationwide.