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, citing multiple regulatory violations, including inadequate capital, insolvency, inactivity, and failure to commence operations.

The revocation, which took effect from July 1, 2026, was announced in a press statement issued by the apex bank on Wednesday and signed by the Acting Director of the Corporate Communications Department, Mrs Hakama Sidi-Ali.

According to the CBN, the action was approved by its Governor, Olayemi Cardoso, in line with the powers conferred on the bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.

The affected institutions span several states, with Kano recording the highest number of revoked licences, followed by Lagos and other states including Abia, Kebbi, Niger, Ogun, Kaduna, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Ondo, Osun, Oyo, Anambra, and the Federal Capital Territory.

What the statement says

The statement read, “The Central Bank of Nigeria (CBN) has revoked the operating licenses 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.”

According to the CBN, the affected microfinance banks failed to satisfy the minimum conditions required to retain their operating licences.

The regulator stated that the revocation became necessary due to “one or more” of several infractions, including insufficient assets to meet liabilities, closure of operations without prior CBN approval, inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving a licence, and failure to maintain the required 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.

Financial stability drive

The CBN described the latest action as part of its broader supervisory strategy to strengthen confidence in Nigeria’s financial system by ensuring that only sound and compliant institutions remain in operation.

• “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 apex bank said.

It added that it remains committed to promoting “a safe, sound and resilient financial system” and would continue to take appropriate supervisory and regulatory actions whenever necessary to maintain public confidence in the country’s banking sector.

Kano, Lagos account for largest share

The list released by the CBN shows that Kano accounted for the largest number of affected institutions, including:

• Bompai MFB
• Now Now Digital MFB
• Minjibir MFB
• Sycamore MFB
• Kanopoly MFB
• Bellbank MFB (formerly Tsanyawa)
• Esteem MFB and several others

Lagos also recorded multiple licence withdrawals involving institutions such as:

• Gold MFB
• Chanelle MFB
• Safegate MFB
• Supreme MFB
• Creditville MFB
• MBAG MFB
• Verdant MFB and
• Entrepreneur MFB.

Other affected institutions include:

• Merchant MFB
• Abia SME MFB
• Kamba MFB
• Zuru MFB
• Apple MFB
• Iwade MFB
• Busu MFB
• Bejin-Doko MFB
• Casha MFB
• Winview MFB and
• Avantus MFB, among others.

What you should know

The latest revocation shows the CBN’s continued enforcement of prudential standards across Nigeria’s financial sector as it seeks to improve the health of licensed financial institutions.

Microfinance banks play a critical role in extending financial services to low-income households, microenterprises and small businesses. However, institutions that fail to meet regulatory requirements can pose risks to depositors and the broader financial system.

Finance experts earlier called on the Central Bank of Nigeria (CBN) to require all deposit-taking fintechs and microfinance banks (MFBs) to publish their annual financial reports, arguing that institutions entrusted with public funds should be subject to greater transparency.