The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, with the decision taking effect from July 1, 2026. This action was approved by CBN Governor Olayemi Cardoso and carried out in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The apex bank cited several regulatory breaches as reasons for the revocations. These included insufficient assets to meet liabilities, the closure of operations without prior CBN approval, prolonged inactivity and cessation of financial intermediation, and the failure to commence operations within 12 months of receiving their licences.
Additionally, the affected microfinance banks failed to maintain the prescribed minimum capital unimpaired by losses. These deficiencies indicate that many of the institutions were either financially distressed or no longer performing their core role of providing financial services to underserved individuals and small businesses.
Geographically, Kano State had the highest number of affected institutions with 13 banks, followed by Lagos State with 8. Other states impacted include Abia, the Federal Capital Territory (Abuja), Kaduna, Kebbi, Niger, Ogun, and Plateau, each recording two banks.
Anambra, Akwa Ibom, Bayelsa, Benue, Cross River, Delta, Kwara, Ondo, Osun, Oyo, and Rivers states each had one microfinance bank whose licence was revoked. By category, 25 of the affected institutions were Tier 2 microfinance banks, 18 were Tier 1 microfinance banks, and three were State microfinance banks.
Notable banks on the revocation list include Minji-Se Churchill MFB, Merchant MFB, Janmaa MFB, Busu MFB, Gold MFB, Zain MFB (formerly Dawakin Tofa MFB), Bompai MFB, Ajwa MFB (formerly Gezawa 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, Rimin Gado MFB, 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 (formerly Tsanyawa MFB), Yeneng MFB, Creditville MFB, MBAG MFB, STRAIGHT SAHARA MFB, OURPASS MFB, VERDANT MFB, BASAWA MFB, CASHA MFB, ESTEEM MFB, ENTERPRENEUR MFB, and AVANTUS MFB.
The CBN stated that this measure is part of its ongoing efforts to strengthen oversight of the financial system, safeguard its stability, protect depositors, and ensure that licensed financial institutions comply with extant laws and prudential regulations. The apex bank reaffirmed its commitment to promoting a safe, sound, and resilient financial system.
The Nigeria Deposit Insurance Corporation (NDIC) earlier reported that over 281 million depositors across the country’s banking system are protected against bank failure. This follows reforms that significantly expanded deposit insurance coverage and accelerated reimbursement of customers of failed banks.
According to Thompson Sunday, the Managing Director and Chief Executive Officer of the NDIC, the corporation currently provides deposit insurance coverage across 914 licensed financial institutions. He noted that over 98 per cent of depositors are fully insured for their entire balances, a result of the upward review of deposit insurance limits in May 2024.
