CBN Revokes 46 Microfinance Bank Licences in Fresh Regulatory Sweep
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks in a fresh regulatory enforcement aimed at strengthening the country’s financial system and ensuring strict compliance with banking laws.
The Apex Bank announced the decision in a statement issued on Wednesday July 1 by its Acting Director of Corporate Communications, Hakama Sidi-Ali, stating that the revocation took effect from July 1, 2026, following the approval of the Governor of the CBN, Olayemi Cardoso.
According to the CBN, the action was taken under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, after the affected Institutions failed to meet the regulatory requirements necessary to continue operating as licensed financial Institutions.
The bank explained that investigations established one or more serious regulatory infractions against the affected institutions, making the withdrawal of their licences inevitable.
Among the violations cited were inadequate assets to meet liabilities, closure of banking operations without obtaining approval from the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months after obtaining operating licences, and failure to maintain the prescribed minimum capital required for continued operations.
According to the regulator, the affected institutions include Tier 1, Tier 2 and State microfinance banks spread across several states, including Lagos, Kano, the Federal Capital Territory (Abuja), Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra.
Some of the microfinance banks affected by the regulatory action 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 list also includes several Kano-based institutions such as 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 forms part of its ongoing efforts to protect depositors, improve regulatory compliance and preserve confidence in Nigeria’s financial sector.
“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 said.
The Apex Bank further reaffirmed its commitment to maintaining a safe, sound and resilient financial system, noting that it would continue to deploy appropriate supervisory and enforcement measures against institutions that fail to comply with extant banking regulations.
Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) has reassured bank customers that their deposits remain protected despite regulatory actions affecting financial Institutions.
The Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, recently disclosed that more than 281 million depositors across Nigeria’s banking system are protected against bank failures through the corporation’s deposit insurance scheme.
Speaking during the second-quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance in Abuja, Sunday revealed that the NDIC currently provides deposit insurance coverage for 914 licensed financial institutions across the country.
He added that following the upward review of deposit insurance limits in May 2024, more than 98 per cent of depositors are now fully insured for the total value of their deposits, a development aimed at boosting public confidence in the nation’s financial system.
The latest revocation underscores the CBN’s resolve to strengthen regulatory oversight of the banking industry and ensure that only financially sound and well-governed institutions continue to operate, as authorities intensify efforts to safeguard depositors and reinforce stability in Nigeria’s financial sector.
