The Central Bank of Nigeria (CBNax) has revoked the operating licences of 46 microfinance banks across the country, with the directive taking effect from July 1, 2026, as part of efforts to strengthen financial system stability and enforce regulatory compliance.
Newsonspot reports that the announcement was made in a statement signed by the Acting Director of the CBN’s Corporate Communications Department, Hakama Sidi-Ali. According to the apex bank, the action was taken under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The CBN explained that the decision, approved by its Governor, Olayemi Cardoso, followed the failure of the affected institutions to meet the conditions required to retain their licences as regulated financial institutions.
The regulator disclosed that the affected microfinance banks violated one or more operational and prudential regulations.
Among the reasons for the licence withdrawal were inadequate assets to meet liabilities, cessation of banking operations without prior approval, prolonged inactivity, failure to commence operations within one year of licensing, and inability to maintain the required minimum capital.
The list of affected institutions shows that Kano State recorded the highest number of revoked licences with 13 microfinance banks, followed by Lagos State with eight. Abia, the Federal Capital Territory (Abuja), Kaduna, Kebbi, Niger, Ogun, and Plateau had two affected banks each, while Anambra, Akwa Ibom, Bayelsa, Benue, Cross River, Delta, Kwara, Ondo, Osun, Oyo, and Rivers recorded one each.
By classification, 25 of the affected institutions were Tier 2 microfinance banks, 18 were Tier 1 microfinance banks, while three were State microfinance banks.
According to the CBN, the licence revocations form part of its ongoing efforts to enhance oversight of Nigeria’s banking sector, safeguard depositors, and ensure that all licensed financial institutions comply with existing laws and prudential guidelines.
The 46 affected institutions 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), 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), Yeneng MFB, Creditville MFB, MBAG MFB, Straight Sahara MFB, OurPass MFB, Verdant MFB, Basawa MFB, Casha MFB, Esteem MFB, Entrepreneur MFB, and Avantus MFB.
